Dhaka, Bangladesh (BBN)– The Bangladesh government is set to borrow BDT 30 billion through issuing its treasury bills (T-bills) today (Wednesday) to meet budget deficit partly.
An auction is scheduled to be held at the central bank headquarters in Dhaka on the day in this connection, according to officials.
As per auction calendar, the government will borrow BDT 15 billion through issuing 91-Day T-bills and another BDT 15 billion from 182-Day T-bills.
The yield, generally known as interest rate, of both T-bills may move up slightly as commercial banks are not interested to buy the instruments after the Eid vacation, a senior treasury official of a leading private commercial bank hinted.
“The interest rates on the government securities may move slowly in the coming days,” the treasury official said without elaborating.
However, the interest rate on 91-day T-bills rose to 3.98 per cent on June 21 from 3.89 per cent of the previous auction while the yield on 182 -day T-bills reached at 4.35 per cent from 4.25 per cent of the previous auction.
Currently, three T-bills are being transacted through auctions to adjust government borrowings from the banking system. The T-bills have 91-day, 182-day and 364-day maturity periods.
Furthermore, five government bonds with tenures of 02, 05, 10, 15 and 20 years respectively are traded on the money market.