Dhaka, Bangladesh (BBN) – The yield on 10-Year BGTBs increased significantly on Tuesday as banks expressed lower interest to invest their excess funds in the long-term securities.

The cut off yield, generally known as interest rate, on the BGTBs rose to 12.55 per cent on the day from 12.15 per cent earlier, according to the auction results.

The government borrowed more than BDT 11.75 billion instead of the pre-auction targeted BDT 30 billion through issuing the treasury bonds on the day to meet its budget deficit partly.

Currently, five government treasury bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.

Besides, four treasury bills (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.