Written by The Banking Post
Yields on government treasury bills showed a mixed trend on Sunday as banks remained cautious amid weak private-sector credit demand. With limited lending opportunities, financial institutions preferred parking excess liquidity in short-term government securities, highlighting a focus on low-risk investments amid broader economic uncertainty.
The auction results showed that the cut-off yield on 91-day T-bills fell to 9.85 per cent from 9.88 per cent, while yields on 182-day and 364-day T-bills rose to 10.02 per cent and 10.08 per cent, respectively. The government raised Tk 90 billion through the issuance of these three types of T-bills to partially finance the budget deficit.
“Most banks preferred to invest their excess liquidity in shorter-tenure, risk-free government securities due to lower private-sector credit demand amid ongoing geopolitical tensions,” a senior Bangladesh Bank official said.
Private-sector credit growth remained subdued at 6.03 per cent year-on-year in February 2026, unchanged from the previous month, according to central bank data. Analysts predict that this cautious trend in T-bill yields is likely to continue in the coming weeks.
Currently, four types of T-bills—14-day, 91-day, 182-day, and 364-day—are auctioned to manage government borrowings, alongside five government bonds with tenures ranging from two to 20 years.
