Dhaka, Bangladesh (BBN) - The ongoing falling trend of yield on 10-Year BGTBs may continue today as the banks expressed their willingness to invest excess funds in the long-term securities.
The cut off yield, generally known as interest rate, on the BGTBs came down to 12.50 per cent in the immediate past auction from 12.55 per cent earlier.
The government is set to borrow BDT 30 billion through issuing the BGTBs on Tuesday to partially meet its budget deficit.
“Lower credit demand for the government is pushing down the yields on its securities,” a market insider told the BBN, adding that the falling trend of yields on the government securities may continue in the coming months.
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.
BBN/SSR/AD