Dhaka, Bangladesh (BBN) – The interest rate on Bangladesh Government Treasury Bonds (BGTB) remained unchanged Tuesday, as commercial banks are not interested in buying the bonds with a lower interest rate, treasury officials said.

The yield, generally known as coupon interest rate, on 15-Year BGTB was 8.74 per cent on the day unchanged from the previous auction, held on January 13 this year.

“The yield of the BGTB has been fixed in line with the market demand,” a senior official of the Bangladesh Bank (BB) said without elaborating.

Bidders offered BDT 1.21 billion for the bond at an auction, held at the central bank on the day, the BB said in its auction result.

Of those, four bids amounting to BDT 320 million were accepted and BDT 680 million was devolved on primary dealers, according to the auction result.

“Most of the banks expect that the demand for fresh investment will go up in the near future and then the interest rate on the long-term security will increase further,” a senior treasury official of a commercial bank said.

BBN/SS/SI/AD-10February10-10:20 am (BST)