Dhaka, Bangladesh (BBN)-The central bank of Bangladesh did not accept any bid of Bangladesh Government Treasury Bonds (BGTB) on Tuesday as commercial banks quoted higher interest rate on the bonds.

“We did not accept any bid of the 15-Year BGTB due to offer higher interest rate on the risk-free long-term security by the commercial banks,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN in Dhaka.

The BB official also said the banks quoted at least 31 basis points higher than the previous auction of the bond.

The previous auction of the bonds was held on October 13 this year which yield, generally known as coupon interest rate, was 8.69 00 percent, he added.

“This is an indication for the banks that the central bank will not increase the interest rate on the bonds right now,” another BB official said.

The auction of 15-year BGTB was held on the day of which 10 bids amounting to total of BDT 1.558 billion were offered but no bid was accepted, according to auction result.

Currently, four government bonds, 5-year, 10-year, 15-year and 20-year, are being traded in the market.

BBN/SS/SI/AD-11November09-2:13 am (BST)