Dhaka, Bangladesh (BBN) - The yields on treasury bills (T-bills) jumped on Sunday as banks expressed unwillingness to invest their excess liquidity in short-term securities.
The cut off yield, generally known as interest rate, on the 91-Day T-bills rose to 11.75 per cent on the from 11.45 per cent of the previous level while the yield on 182-Day T-bills rose to 11.90 per cent from 11.72 per cent.
However, the yield on 364-Day T-bills reached at 11.99 per cent on the day from 11.88 per cent earlier, according to the auction results.
The government borrowed BDT 55.89 billion against the pre-auction target of BDT 85 billion through issuing three-type of T-bills to meet its budget deficit partly.
Currently, four 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.
The bills are short-term investment tools issued through auction, conducted by the central bank on behalf of the government.
Furthermore, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.
BBN/SSR/AD