The cut off yield, generally known as interest rate, on the 15-Year BGTBs came down to 10.96 per cent in the immediate past auction from 11.91 per cent earlier while the yield on the 20-Year BGTBs stood at 11.75 per cent from 11.94 per cent, according to the auction results.

The government is set to borrow BDT 30 billion through issuing the BGTBs on Tuesday to partially meet its budget deficit.

“Most of banks are maintaining a cautious approach in investing their excess funds in long-term securities, considering the future liquidity situation in the market,” an expert said, adding that liquidity support from the central bank is set to squeeze after phasing out the 28-day tenure repo facility from April 10 this calendar year

“Actually, the interest rates on the government-approved securities are not factored at this moment,” he said, adding that factor is the future liquidity situation in the market.

The expert also predicted that the ongoing upward trend of yield on BGTBs may continue in the coming months.

Earlier on March 18 this calendar year, the yield on 10-year Bangladesh Government Treasury Bonds (BGTBs) crossed 12 per cent on the same ground.

The cut-off yield on the BGTBs rose to 12.05 per cent on the day from 10.32 per cent earlier.

Currently, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.

On the other hand, 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.

BBN/AD/SI