Interest on BGTB goes up a little Tuesday

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FE Report
The interest rate on Bangladesh Government Treasury Bonds (BGTB) increased slightly Tuesday, as commercial banks are not interested to buy the bonds with a lower yield, treasury officials said.
The yield, generally known as coupon interest rate, on 20-year BGTB rose to 9.2500 per cent on the day from 9.2300 per cent of the previous auction, held on August 24 this year.
Bidders offered Tk 1.628 billion for the bonds at an auction, held at the Bangladesh Bank (BB) on the day, the central bank said in its auction result.
Of those, four bids amounting to Tk 452.5 million were accepted and Tk 797.5 million was devolved on primary dealers (PDs), according to the auction result.
The central bank earlier selected 15 PDs - 12 banks and 3 non-banking financial institutions - to handle government securities in the secondary market.
"We expect that the overall interest rate may rise in the near future in line with the central bank's latest indication and then the interest rate on the long-term security will increase," a senior treasury official of a commercial bank said.
Bangladesh Bank has increased its policy interest rate by 1.0 percentage point aiming to curb inflationary pressure on the economy.
The interest rate on repurchase agreement (repo) auction was re-fixed at 5.50 per cent on August 19 this year from 4.50 per cent, while the reverse repo auction was increased to 3.50 per cent from 2.50 per cent.