Govt borrows Tk 50b to meet budget deficit

The government borrowed Tk 50 billion in a single day on Wednesday through a special auction of 91-day treasury bills (T-bills) to partially meet its budget deficit.
The yield on the T-bills rose to 10.04 per cent on the day, up from 9.85 per cent earlier, according to the auction results.
"The yield on T-bills increased as four auctions were held during the first eight days of this month," a senior Bangladesh Bank (BB) official told The Financial Express (FE), explaining the latest market situation.
Echoing the BB official, a senior treasury official at a leading private commercial bank said higher government borrowing from banks has pushed up T-bill yields.
The government borrowed an additional Tk 100 billion through two special auctions during the period under review, according to the private banker.
"The ongoing Middle East conflict has created additional pressure on the government's budgetary expenditures," the treasury official said, explaining the need for extra borrowing.

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