Dhaka, Bangladesh (BBN) - The yield on Five-Year BGTBs is likely to fall further today as the banks may express their willingness to invest excess funds in the long-term securities.
The government is set to borrow BDT 40 billion through issuing the BGTBs on Tuesday to partially meet its budget deficit.
The cut off yield, generally known as interest rate, on the BGTBs came down to 12.38 per cent in the immediate past auction from 12.45 per cent earlier, according to the auction results.
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