Dhaka, Bangladesh (BBN) - Yields on treasury bills (T-bills) showed a mixed trend on Sunday, as banks appeared reluctant to invest their excess liquidity in risk-free government securities ahead of the year-end closing.
The cut-off yield, generally regarded as the interest rate, on 91-day T-bills rose to 10.14 per cent from 10.07 per cent, while the 182-day T-bill yield edged slightly down to 10.14 per cent from 10.15 per cent.
Meanwhile, the 364-day T-bill yield increased to 10.24 per cent from 10.10 per cent, according to auction results.
Despite the mixed yield trends, the government raised BDT 75 billion by issuing the three types of T-bills to finance its budget deficit.
“Most banks are reluctant to park their excess funds in T-bills ahead of the year-end closing on December 31,” a senior central banker said while explaining the latest market situation.
The official also predicted that the current trend in government securities yields may continue in the coming weeks.
Currently, four types of T-bills are transacted through auctions to manage government borrowing from the banking system, with maturities of 14 days, 91 days, 182 days, and 364 days.
In addition, five government bonds with tenures of 2, 5, 10, 15, and 20 years are also traded in the market.
BBN/SSR/AD