FE Report
The interest rate on Bangladesh Government Treasury Bonds (BGTB) dropped further Tuesday, as commercial banks rushed to offer bids in the auction, treasury officials said.
The yield, generally known as coupon interest rate, on 15-year BGTB fell to 8.59 per cent on the day from 9.39 per cent of the previous auction, held on July 14 last.
"Most of the commercial banks have quoted lower interest rates to invest their excess liquidity in the government-approved securities to minimise their cost of funds," a senior treasury official of a commercial bank told the FE.
The overall excess liquidity with the commercial banks stood at Tk 347 billion in June 2009, registering a 165 per cent growth over that of the same period of the previous calendar year, according to the BB.
Banks' rush pulls down T Bond yield
FE Team | Published: August 12, 2009 00:00:00 | Updated: February 01, 2018 00:00:00
Share if you like