Yields on government treasury bills showed a mixed movement on Sunday, reflecting cautious investment behaviour by banks amid subdued private- sector credit demand.
With limited lending opportunities, banks are increasingly parking excess liquidity in short-term government securities.
The shift underscores broader economic uncertainty, as financial institutions prioritise liquidity management and lower-risk investments over longer-term commitments.
The cut-off yield, generally known as the interest rate, on 91-day T-bills fell to 9.85 per cent on the day from 9.88 per cent earlier, according to the auction results.
On the other hand, the yield on 182-day T-bills rose to 10.02 per cent from 9.97 per cent, while the yield on 364-day T-bills increased to 10.08 per cent from 10.00 per cent.
The government raised Tk 90 billion on the day by issuing three types of T-bills to partially finance its 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 official of the Bangladesh Bank (BB) told The Financial Express (FE).
Meanwhile, private sector credit growth stood at 6.03 per cent year-on-year in February 2026, remaining unchanged from the previous month, according to the central bank's latest figures.
The central banker also predicted that the current trend in yields on government securities may continue in the coming weeks.
Currently, four types of T-bills are traded through auctions to manage government borrowings from the banking system. These carry maturity periods of 14 days, 91 days, 182 days and 364 days.
In addition, five government bonds with tenures of two, five, 10, 15 and 20 years are traded in the market.
siddique.islam@gmail.com
