Dhaka, Bangladesh (BBN) - Yields on treasury bills (T-bills) fell slightly on Sunday as banks preferred investing their excess liquidity in risk-free government securities amid subdued private sector credit demand due to ongoing geopolitical tensions.
Bankers said the disbursement of BDT 31 billion in export cash incentives, coupled with the central bank’s purchase of US dollars from banks, helped boost market liquidity, thereby putting downward pressure on T-bill yields.
The cut-off yield, generally known as the interest rate, on 91-day T-bills fell to 10.17 per cent from 10.19 per cent previously, while the yield on 182-day T-bills declined to 10.47 per cent from 10.50 per cent.
Meanwhile, the yield on 364-day T-bills edged down to 10.65 per cent from 10.67 per cent earlier, according to auction results.
On the day, the government raised BDT 90 billion through three types of T-bills to partially finance its budget deficit.
“Most banks are keen to invest their excess liquidity in government securities as private sector credit demand remains subdued due to ongoing geopolitical tensions,” a senior treasury official said, explaining the market situation.
Private sector credit growth stood at 6.03 per cent year-on-year in February 2026, unchanged from the previous month, according to central bank data.
He also said the central bank purchased $130 million from banks last week to stabilize the US dollar–Bangladesh taka exchange rate by offsetting higher remittance inflows ahead of Eid-ul-Azha.
The central bank has so far bought $5.88 billion from banks since July 13 under the prevailing free-floating exchange rate regime, BB data showed.
The banker also expected the current trend in government securities yields to persist in the coming weeks.
Currently, four T-bills with 14-day, 91-day, 182-day and 364-day maturities are traded through auctions to manage government borrowing from the banking system.
In addition, five government bonds with tenures of two, five, 10, 15 and 20 years are actively traded in the market.
BBN/SSR/AD