Dhaka, Bangladesh (BBN) - The yields on two types of Treasury bills (T-bills) increased slightly on Sunday, as banks showed reluctance to invest their excess liquidity in the securities.
The cut off yield, generally known as interest rate, on the 91-Day T-bills rose to 11.64 per cent on the day from 11.59 per cent of the previous level while the yield on 182-Day T-bills rose to 11.87 per cent from 11.84 per cent.
However, the yield on 364-Day T-bills came down to 11.90 per cent on the day from 11.92 per cent earlier, according to the auction results.
“The existing trend of yields on T-bills may continue in the coming weeks,” a senior official of the Bangladesh Bank (BB) said while explaining the latest market situation.
He also said yields on the government securities covering both T-bills and treasury bonds are likely to fall if the inflationary pressure on the economy eases in April.
However, the government borrowed Tk 90 billion on the day 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.
Furthermore, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.
BBN/SSR/AD