Dhaka, Bangladesh (BBN) - The yield on Two-Year BGTBs almost remained unchanged today as banks expressed their unwillingness to invest funds in the securities.
The cut off yield, generally known as interest rate, on the BGTBs came down at 12.24 per cent on Tuesday from 12.25 per cent earlier, according to the auction results.
The government borrowed more than BDT 40 billion instead of BDT 35 billion through issuing the BGTBs on the day to meet its budget deficit partly, a senior official of the Bangladesh Bank told the BBN.
The businessmen's reduced desire for new loans resulted in a modest decline in the yield on the BGTBs, indicating that normalcy has not yet entirely returned, he explained.
Currently, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.
Besides, four treasury bills (T-bills) are transacted through auction to adjust government borrowings from the banking system. The T-bills have 14-day, 91-day, 182-day and 364-day maturity periods.
BBN/SSR/AD