Dhaka, Bangladesh (BBN) - The yields on 15-Year BGTBs and 20-Year BGTBs fell significantly on Tuesday as banks expressed willingness to invest their liquidity in the long-term securities.
The cut off yield, generally known as interest rate, on the 15-Year BGTBs came down to 12.50 per cent on the day from 2.65 per cent earlier while the yield on the 20-Year BGTBs fell to 12.65 per cent from 12.75 per cent, according to the auction results.
On the day, the government borrowed around BDT 38.52 billion instead of the pre-auction targeted BDT 20 billion through issuing the two-type of long-term treasury bonds to partly meet its budget deficit.
Currently, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.
On the other hand, four 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