Dhaka, Bangladesh (BBN) -The ongoing stable trend of yield on 91-Day Treasury Bills (T-bills) may continue today as banks may express unwillingness to invest their excess liquidity in the short-term securities.
The cut off yield, generally known as interest rate, on the 91-Day T-bills remained unchanged at 11.65 per cent in the immediate past auction from the previous level, according to auction results.
The government is set to borrow BDT 30 billion on the day through issuing the short-term securities to meet budget deficit partly for the outgoing fiscal year (FY), 2023-24.
“The government may borrow more if the participation rises with quoting reasonable yield on the T-bills,” a market insider indicated.
He also said the government has faced huge pressure on payments as ending this FY on June 30.
Currently, four 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.
The bills are short-term investment tools issued through auction, conducted by the central bank on behalf of the government.
Furthermore, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.
BBN/SSR/AD