Dhaka, Bangladesh (BBN) - The yield on 20-Year BGTBs increased significantly on Tuesday as banks expressed unwillingness to invest their liquidity in the long-term securities.
The cut off yield, generally known as interest rate, on the 20-Year BGTBs rose to 12.7891on the day from 12.65 per cent earlier, according to the auction results.
On the day, the government borrowed BDT 20 billion through issuing the long-term treasury bonds to partly meet its budget deficit.
Currently, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.
On the other hand, 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.
BBN/SSR/AD