Dhaka, Bangladesh (BBN) - The yields on treasury bills (T-bills) are likely to rise further today as banks appeared reluctant to invest their excess liquidity in risk-free government securities ahead of the year-end closing.
The cut off yield, generally known as interest rate, on the 91-Day T-bills rose to 10.24 per cent in the immediate past auction from 9.53 per cent of the previous level while the yield on 182-Day T-bills inched up to 9.99 per cent from 9.98 per cent.
But the yield on the 364-day T-bills remained unchanged at 9.99 per cent, according to the auction results.
Most banks are likely to show reluctance in investing their excess funds in government-approved securities ahead of the year-end closing, market insiders hinted.
The government is set to borrow BDT 75 billion on Sunday through issuing three-type of T-bills to meet its budget deficit partly.
Currently, four 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.
The bills are short-term investment tools issued through auction, conducted by the central bank on behalf of the government.
Furthermore, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.
BBN/SSR/AD