BB seeks info on treasury bonds from banks

The central bank has sought information on treasury bonds from the commercial banks as the government has planned to buy back its securities from the market this month.
Bangladesh Bank (BB) has asked the commercial banks to submit the details of their treasury bonds and wanted to know whether they intend to sell them in the current market price by today (Monday), officials said.
Talking to the FE, a senior official familiar with the government debt-management activities said the Ministry of Finance (MoF) may buy back the treasury bonds from the market this month to handle the government cash management properly.
Currently, the government holds around Tk 60 billion in excess liquidity in its accounts.
"The decision on buy-back of the treasury bonds will be finalised on the basis of the BB's recommendation," the official explained.
He also said the central bank will submit a feasibility report in this regard to the MoF shortly.
The government's latest move came after slashing its bank borrowing target nearly 59 per cent for the last 13 days in the current month.
Under the revised target, the government is set to borrow Tk 14 billion from the country's banking system through issuing its treasury bills and bonds from January 19 to January 31 instead of Tk 34 billion.
At present, five government treasury bonds with the tenures of two, five, 10, 15 and 20 years respectively are traded on the market.
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