Written by The Banking Post
The yield on long-term Bangladesh Government Treasury Bonds (BGTBs) fell further on Tuesday as banks opted for risk-free government securities to deploy excess liquidity amid subdued demand for private sector credit.
The cut-off yield on the 10-year BGTBs declined to 10.26 percent from 10.48 percent in the previous auction, according to official auction results. The yield had earlier fallen from 12.35 percent to 10.48 percent in the July 22 auction.
“Some banks prefer to invest their excess funds in BGTBs due to lower credit demand from the private sector ahead of the general election,” a senior Bangladesh Bank official said, explaining the current market trend.
