Dhaka, Bangladesh (BBN) - The yield on Five-Year BGTBs fell slightly today as the banks expressed their willingness to invest excess funds in the long-term securities.
The cut off yield, generally known as interest rate, on the BGTBs came down to 12.37 per cent on Tuesday from 12.40 per cent earlier, according to the auction results.
The government borrowed BDT43.68 billion against the pre-auction target at BDT 25 billion through issuing the treasury bonds on the day to meet its budget deficit partly.
Currently, five government treasury 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