Written by The Banking Post
The government raised Tk 65 billion through treasury bills (T-bills) on Sunday, as yields on the short-term securities fell slightly amid strong demand from banks flush with liquidity.
According to auction results, the cut-off yield on the 91-day T-bill dropped to 10.07 per cent from 10.12 per cent in the previous auction. The 182-day yield slipped to 10.13 per cent from 10.29 per cent, while the 364-day rate declined to 10.14 per cent from 10.37 per cent.
“The government’s lower demand for funds, coupled with higher liquidity in some banks, has pushed down T-bill yields,” a senior Bangladesh Bank official told The Banking Post. The official added that the downward trend in yields may persist in the coming weeks.
Currently, four types of T-bills — 14-day, 91-day, 182-day and 364-day — are auctioned to help the government manage its budget deficit. In addition, five government bonds with maturities ranging from two to 20 years are traded in the market.
