Dhaka, Bangladesh (BBN) - Yields on longer-term treasury bills (T-bills) edged up on Sunday as banks remained reluctant to lock in excess liquidity ahead of the year-end closing and the upcoming national election.
The cut-off yield on the 182-day T-bills rose to 10.65 per cent from 10.57 per cent, while the 364-day T-bill yield increased marginally to 10.72 per cent from 10.70 per cent.
In contrast, the yield on 91-day T-bills eased to 10.53 per cent from 10.55 per cent, reflecting banks’ preference for shorter tenors.
The government raised BDT 70 billion through the issuance of three types of T-bills to partially finance its budget deficit.
Market participants said banks are avoiding longer maturities to preserve balance-sheet flexibility ahead of the December 31 year-end and the national election scheduled for February 12, 2026.
A senior Bangladesh Bank official predicted the existing trend of yields on the government securities may continue in the coming weeks.
Currently, four T-bills—14-day, 91-day, 182-day and 364-day—are auctioned to manage government borrowing from the banking system, alongside five treasury bonds with tenures ranging from two to 20 years.
BBN/SSR/AD