Bangladesh Govt. to borrow BDT 10 billion issuing T-bills

Last updated: September 24, 2017

Dhaka, Bangladesh (BBN)– The Bangladesh government is set to borrow BDT 10 billion through issuing its treasury bills (T-bills) today (Sunday) to meet budget deficit partly.

The auctions are scheduled to be held at the central bank headquarters in Dhaka on the day in this connection, according to officials.

As per auction calendar, the government will borrow BDT 5.0 billion through issuing 91-Day T-bills and another BDT 5.0 billion from 182-Day T-bills.

However, the interest rate on 91-day T-bills came down to 3.86 per cent on September 17 from 3.95 per cent on September 10 while the yield on 182 -day T-bills stood at 4.10 per cent from 4.29 per cent.

“The yield, generally known as interest rate, of both T-bills may remain almost stable today (Sunday) as most of the banks prefer to buy the instruments to meet SLR with the central bank,” a senior treasury official of a leading private commercial bank told BBN without elaborating.

Currently, three T-bills are being transacted through auctions to adjust government borrowings from the banking system. The T-bills have 91-day, 182-day and 364-day maturity periods.

Furthermore, five government bonds with tenures of 02, 05, 10, 15 and 20 years respectively are traded on the money market.

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