Dhaka, Bangladesh (BBN) - The yields on treasury bills (T-bills) are likely to fall today as banks may prefer to invest their excess liquidity in the risk-free securities.
The cut-off yield, generally known as interest rate, on the 91-day T-bills rose to 11.65 per cent in the immediate past auction 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.
The government borrowed is set to borrow BDT 75 billion on Sunday 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