Dhaka, Bangladesh (BBN) - The yield on 02-Year BGTBs fell slightly on Tuesday as banks expressed willingness to invest their excess funds in the securities.
“Most of banks were showing interest to invest their excess funds in the risk free securities for minimizing investment risk,” a market insider said while explanting latest situation on the market.
The cut off yield, generally known as interest rate, on the BGTBs came down to 12.25 per cent on the day from 12.30 per cent earlier, according to the auction results.
The government borrowed BDT 35 billion through issuing the treasury bonds on the day to meet its budget deficit partly.
Currently, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.
Besides, four treasury bills (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/SSR/AD