Dhaka, Bangladesh (BBN) - The yields on Treasury Bills (T-bills) is likely to fall further today as banks may express willingness to invest their excess liquidity in the short-term securities.
Lower credit demand, particularly from private sector, and higher remittance inflows is pushing down the yields on government securities including T-bills, according to market insiders.
They also forecasts a further significant fall in G-Sec yields during the second half (H2) of the current fiscal year, if the government downsizes the national budget by approximately Tk 1.0 trillion.
The interim government plans to eliminate unnecessary projects included in the current fiscal year (FY), 2024-25, budget under the deposed Awami League regime.
Economic managers of the interim government believe that this initiative could reduce the FY'25 budget by around Tk 1.0 trillion.
The cut off yield, generally known as interest rate, on the 91-Day T-bills came down to 11.53 per cent in the immediate past auction from 11.58 per cent of the previous level while the yield on 182-Day T-bills was stay at 11.80 per cent from the earlier.
However, the yield on 364-Day T-bills also remained unchanged at 11.95 per cent on the day from the previous level, according to the auction results.
The government is set to borrow BDT 75 billion on Sunday through issuing three-type of the T-bills 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