Dhaka, Bangladesh (BBN) - The yields on Treasury Bills (T-bills) fell slightly today as banks expressed willingness to invest their excess liquidity in the short-term securities.
The cut off yield, generally known as interest rate, on the 91-Day T-bills came down to 11.51 per cent on Sunday from 11.53 per cent of the previous level while the yield on 182-Day T-bills fell to 11.75 per cent from 11.80 per cent earlier.
However, the yield on 364-Day T-bills also came down to 11.75 per cent on the day from 11.80 per cent of the previous level, according to the auction results.
The government borrowed BDT 75 billion through issuing three-type of T-bills on the day to partially meet its budget deficit.
Currently, 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.
The bills are short-term investment tools issued through auction, conducted by the central bank on behalf of the government.
Furthermore, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.
BBN/SSR/AD