Dhaka, Bangladesh (BBN) - Yields on treasury bills (T-bills) declined further on Sunday as the central bank purchased an additional US$123 million from eight banks in a bid to keep the exchange rate of the US dollar against the local currency stable.
The cut-off yield —commonly known as the interest rate— on the 91-day T-bills fell to 10.02 per cent from the previous 10.11 per cent.
The yield on 182-day T-bills dropped to 10.11 per cent from 10.22 per cent, while the 364-day T-bills declined to 10.07 per cent from 10.23 per cent earlier, according to auction results.
Earlier, on February 15, yields on all three tenors had also declined on similar grounds.
On the day, the government raised BDT 75 billion by issuing T-bills to partially finance its budget deficit.
“Most banks are eager to invest their excess liquidity in government securities, as private sector credit demand remains subdued amid uncertainty following the just-concluded national election,” a senior Bangladesh Bank (BB) official said while explaining the latest market situation.
Private sector credit growth stood at 6.10 per cent year-on-year in December 2025, down from 6.58 per cent a month earlier, according to the central bank’s latest data.
Market operators said the central bank’s dollar purchases injected liquidity into the market in the form of Bangladesh Taka (BDT), which in turn pushed bond yields lower.
As part of its ongoing open market operations, the BB on Sunday purchased $123 million from eight banks through an interbank spot market auction to help stabilise the exchange rate.
The amount was bought under the Multiple Price Auction method, with the cut-off rate set at BDT 122.30 per dollar, according to central bank officials.
Data from the Bangladesh Bank showed that the central bank has so far purchased $5.38 billion directly from banks since July 13 under the prevailing free-floating exchange rate regime.
Central bankers said the dollar-buying move is aimed at maintaining exchange rate stability, preserving export competitiveness, and supporting steady remittance inflows.
They added that such interventions are also helping gradually rebuild the country’s foreign exchange reserves.