Dhaka, Bangladesh (BBN) - Yields on Treasury bills (T-bills) remained largely unchanged on Sunday as banks continued to channel surplus liquidity into government securities amid subdued private sector credit demand.
Market participants said the cautious lending environment has prompted banks to prefer risk-free instruments, while ongoing geopolitical uncertainties have dampened business confidence and borrowing appetite.
According to the latest auction results, the cut-off yield—generally known as the interest rate—on the 91-day T-bills remained unchanged at 9.89 per cent from the previous level.
However, the yield on 82-day T-bills edged up slightly to 10.00 per cent from 9.99 per cent, while the yield on 364-day T-bills remained stable at 10.00 per cent.
On the day, the government raised BDT 82.50 billion through the issuance of three tenors of T-bills to partially finance its budget deficit.
“Most banks preferred to invest their excess liquidity in risk-free government securities due to lower private sector credit demand amid ongoing geopolitical tensions,” a senior official of the Bangladesh Bank (BB) said while explaining the latest market situation.
Recent data from the central bank show that private sector credit growth slowed to 6.03 per cent year-on-year in January 2026, down from 6.10 per cent in December last, indicating weak investment appetite in the real economy.
Analysts said the combination of soft credit demand and comfortable liquidity in the banking system has continued to support banks’ appetite for government securities, keeping yields relatively stable in recent auctions.
The BB official also indicated that the current trend in government security yields may persist in the coming weeks if liquidity conditions remain comfortable and credit demand fails to pick up significantly.
Currently, four types of Treasury bills—14-day, 91-day, 182-day and 364-day —are auctioned regularly to help adjust government borrowings from the banking system.
In addition, five government bonds with maturities of two, five, 10, 15 and 20 years are traded in the domestic debt market, providing longer-term investment instruments for banks and other institutional investors.
BBN/SSR/AD