The yields on treasury bills (T-bills) fell slightly on Sunday as banks expressed willingness to invest their excess liquidity in short-term securities.
The cut off yield, generally known as interest rate, on the 91-Day T-bills came down to 11.51 per cent on the day from 11.53 per cent of the previous level while the yield on 182-Day T-bills fell to 11.75 per cent from 11.80 per cent earlier.
However, the yield on 364-Day T-bills also came down to 11.75 per cent on the day from 11.80 per cent of the previous level, according to the auction results.
The government borrowed Tk 75 billion through issuing three types of T-bills on the day to partially meet its budget deficit.
"The interim government's credit requirement is low as the public expenditure is slashing gradually," a senior official of the Bangladesh Bank (BB) told the FE while explaining the declining trend of yields on the T-bills.
The ongoing downward trend of yields on T-bills may continue in the near future, the central banker hinted. Talking to the FE, a treasury head of a leading private commercial bank said the yields on Bangladesh Government Treasury Bonds (BGTBs) are likely to fall slightly in the next auction, scheduled to be held on Tuesday.
The existing downward trend of yields on government securities (G-Sec) may continue in the coming months.
Currently, four T-bills are transacted through auction to adjust government borrowings from the banking system. The T-bills have 14-day, 91-day, 182-day and 364-day maturity periods.
The bills are short-term investment tools issued through auction, conducted by the central bank on behalf of the government.
Furthermore, five government bonds, with tenures of two, five, 10, 15 and 20 years respectively, are traded on the market.
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