Dhaka, Bangladesh (BBN) - The yields on treasury bills (T-bills) are likely to fall slightly today as banks may prefer to invest their excess liquidity in the risk-free securities.
The cut-off yield, generally known as interest rate, on the 91-Day T-bills came down to 10.12 per cent in the immediate past auction from 10.14 per cent of the previous level while the yield on 182-day T-bills fell to 10.29 per cent on the day from 10.35 per cent earlier.
However, the yield on 364-Day T-bills came down to 10.37 per cent on the day from 10.43 per cent earlier, according to the auction results.
The government is set to borrow BDT 65 billion on Sunday by issuing the three types of T-bills to meet its budget deficit partly.
Currently, four T-bills are transacted through auctions 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 in the market.
BBN/SSR/AD