Dhaka, Bangladesh (BBN) - The yield on 10-Year BGTBs is likely to fall slightly today as the banks may express their willingness to invest excess funds in the long-term securities.
The cut off yield, generally known as interest rate, on the BGTBs remained unchanged at 12.55 per cent in the immediate past auction from the previous level.
The government is set to borrow BDT 20 billion through issuing the BGTBs on Tuesday to partially meet its budget deficit.
“Lower credit demand for the interim government is likely to push down the yield on the long-term bonds,” a market insider said while explaining the possible declining trend of yields on the government securities (G-Sec).
The existing downward trend of yields on the G-Sec may continue in the coming months, he hinted.
Currently, five government treasury 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