Dhaka, Bangladesh (BBN) - The yields on treasury bills (T-bills) showed a mixed trend on Sunday as banks preferred to invest their excess liquidity in higher-tenure securities rather than lower-tenure ones.
The yield on 91-Day increased while the yields on 182-Day and 364-Day decreased.
The cut-off yield, generally known as interest rate, on the 91-day T-bills rose to 11.65 per cent on the day from the previous level of 11.54 per cent.
However, the yield on 182-day T-bills fell to 11.51 per cent on the day from 11.64 per cent earlier while the yield on 364-day T-bills came down to 11.62 per cent from 11.64 per cent, according to the auction results.
Most banks are interested to invest their funds in longer-tenure securities rather than shorter-tenure ones, anticipating a decline in yields on government securities in the coming months, according to market insiders.
Pressure on the government’s bank borrowing may ease in the near future as an inflow of funds from overseas sources is expected to increase by the end of June 2025, they explained.
However, the government borrowed BDT 75 billion on the day through issuing three types of T-bills to partially meet its budget deficit.
Currently, four T-bills are transacted through auctions to adjust government borrowings from the banking system. The T-bills have 14-day, 91-day, 182-day and 364-day maturity periods.
Furthermore, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded in the market.
BBN/SSR/AD