Dhaka, Bangladesh (BBN)– The government is set to borrow BDT 10 billion through issuing Bangladesh Government Treasury Bonds (BGTBs) today (Tuesday) to meet budget deficit partly.
Auctions are scheduled to be held at the central bank headquarters in Dhaka on the day in this connection, according to officials.
The government will borrow BDT 5.0 billion through issuing 15-Year BGTBs and another BDT 5.0 billion from 20-Year BGTBs, according to the auction calendar, issued by the Bangladesh Bank (BB) earlier.
The cut off yield, generally known as interest rate, on 15-Year BGTBs came down to 7.70 per cent on June 21 last from 7.92 per cent earlier while the yield on 20-Year BGTBs stood at 8.05 per cent from 8.32 per cent.
Talking to BBN a senior treasury official of a leading private commercial bank said the yield on both BGTBs may remain almost unchanged today (Tuesday) s most of the banks prefer to buy the instruments to meet SLR (statuary liquidity ratio) with the BB.
Currently, four treasury bills (T-bills) are transacted on auction to adjust government borrowings from the banking system. The T-bills have 14-day, 91-day, 182-day and 364-day maturity periods.
These bills are short-term investment tools issued through auctions, conducted by the central bank on behalf of the government.
Furthermore, five government bonds, with tenures of 02, 05, 10, 15 and 20 years respectively, are traded on the money market.