Dhaka, Bangladesh (BBN)- The yield on Five-Year Bangladesh Government Treasury Bonds (BGTBs) fell significantly on Tuesday as banks expressed willingness to invest their excess liquidity in the risk free securities.
The cut off yield, generally known as interest rate, on the BGTBs came down to 11.99 per cent on the day from 12.39 per cent earlier, according to auction results.
To partially meet its budget deficit, the government borrowed BDT 50 billion through the issuance of BGTBs on the day, exceeding the pre-auction target of BDT 35 billion.
The government has borrowed more funds than the pre-auction target in line with market requirements, according to a senior official of the Bangladesh Bank (BB).
He also said that higher demand for the BGTBs has pushed down the yield on the government-approved securities.
Earlier on May 06, 2025, the yield on Two-Year BGTBs dropped significantly on the same ground.
The cut off yield on Two-Year BGTBs came down to 11.97 per cent on the day from 12.18 per cent earlier.
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