Written by The Banking Post
The yields on treasury bills (T-bills) dropped further on Sunday, as banks opted to park their excess liquidity in risk-free short-term government securities amid improved cash inflows.
According to the Bangladesh Bank’s auction results, the cut-off yield on the 91-day T-bills declined to 10.24 per cent from 10.33 per cent. Yields on the 182-day and 364-day bills also dropped to 10.50 per cent and 10.39 per cent respectively, down from 10.61 per cent and 10.62 per cent.
“A number of banks have shown renewed interest in short-term securities due to an increase in liquidity inflows,” a senior Bangladesh Bank official told The Financial Express, adding that the current downward trend in T-bill yields may persist in the coming weeks.
To partly finance its budget deficit, the government borrowed Tk 55 billion on the day through the issuance of three types of T-bills.
At present, four types of treasury bills are issued through auctions — with tenures of 14, 91, 182, and 364 days. Additionally, five types of government bonds, with maturities of two, five, 10, 15, and 20 years, are also available in the market.
