Dhaka, Bangladesh (BBN)- The government is set to borrow BDT 43 billion today through issuing two-type of treasury bonds, officials said.
The government is expected to borrow BDT 40 billion through issuing Two-Year BGTBs on Tuesday to meet its budget deficit partly.
Besides, the government is going to issue Three-Year Floating Rate Treasury Bonds (FRTBs) worth BDT 3.0 billion today on the same ground.
The FRTB is a bond whose coupon is determined by adding spread with benchmark 91 days Bangladesh Compounded Rate (BCR).
The BCR is a daily rate based on the cut-off yield of 91-Day Treasury Bills (T-bills) auction. This is a reference rate which is primarily used to set the rate of floating rate instruments of the government.
However, the yield on Two-Year BGTBs is likely to remain almost unchanged today as banks may express unwillingness to invest funds in the securities.
The cut off yield, generally known as interest rate, on the BGTBs came down to 12.24 per cent in the immediate past auction from 12.25 per cent earlier.
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