Dhaka, Bangladesh (BBN) – The interest rate on 30-Day Bangladesh Bank (BB) bills fell further on Monday as commercial banks rushed to offer bids in the auction, bankers said.

The yield, generally known as interest rate, on 30-Day BB bills came down to the range of 2.79 and 2.50 per cent on the day from 2.87 and 2.65 per cent of the previous auction, held on December 31 last.

On Monday, 22 bids amounting total of BDT 21.19 billion were offered. Of which, 19 bids amounting total of BDT 20.29 billion were accepted.

On the other hand, four bids amounting total of BDT 1.9850 billion were offered and the bids were accepted as per the central bank sterilization policy.

The central bank of Bangladesh reintroduced 30-day and 91-day Bangladesh Bank Bills in October 2006 as monetary policy instruments following decision that the government treasury bills and the bond auctions are exclusively used for the government debt management.

However, the auction of 91-day Bangladesh Bank Bills was discontinued to avoid duplication with 91-day Treasury Bills from January 8, 2008.