Five-year T-bonds yield falls

The yield on Bangladesh's five-year treasury bonds fell slightly on Tuesday as banks continued to channel excess liquidity into government securities amid sluggish private-sector credit demand and improved remittance inflows.
The cut-off yield, generally known as the interest rate, on the Bangladesh Government Treasury Bonds fell to 10.22 per cent on the day from 10.32 per cent earlier, according to auction results.
On the day, the government raised Tk 25 billion by issuing the BGTBs to partially finance its budget deficit.
"Most banks are parking their excess funds in risk-free government securities as private-sector credit demand remains subdued amid ongoing geopolitical tensions," a senior official of the Bangladesh Bank told The Financial Express, explaining the current market situation.
Meanwhile, private-sector credit growth fell to 6.03 per cent year-on-year in January 2026, down from 6.10 per cent a month earlier, according to the central bank's latest figures.
The official also noted that stronger inflows of inward remittances have boosted market liquidity, putting downward pressure on BGTB yields.
Currently, five government bonds with tenures of two, five, 10, 15 and 20 years are traded in the market.
In addition, four treasury bills (T-bills) are auctioned regularly to manage the government's short-term borrowings from the banking system.
These T-bills carry 14-day, 91-day, 182-day and 364-day maturity periods.

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