Dhaka, Bangladesh (BBN)– The Bangladesh government is set to borrow BDT 20 billion through issuing its treasury bills (T-bills) today (Sunday) to meet budget deficit partly.
An auction is scheduled to be held at the central bank headquarters in Dhaka on Sunday in this connection, according to officials.
As per auction calendar, the government will borrow BDT 10 billion through issuing 91-Day T-bills and another BDT 10 billion from 364-Day T-bills.
The yield, generally known as interest rate, of both T-bills may move up today as commercial banks are not interested to buy the instruments ahead of the Eid, a senior treasury official of a leading private commercial bank hinted.
He also said the interest rates on the government securities are increasing gradually due to the upcoming Eid-ul-Fitr festival and June closing.

Bangladesh govt. securities’ yield rises ahead of Eid

However, the interest rate on 91-day T-bills rose to 3.38 per cent on June 04 from 2.87 per cent of the previous auction held on April 30 last while the yield on 182 -day T-bills reached at 4.25 per cent from 3.14 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.