Interest rate on treasury bonds rises slightly
Wednesday, 13 October 2010
FE Report
The yield on Bangladesh government treasury bonds increased only slightly Tuesday as commercial banks are not interested in buying the bonds with a lower yield, treasury officials said.
The generally known as coupon rate yield on 15-year BGTB traded on the day rose to 8.9500 per cent from 8.9200 per cent of the previous auction, held on September 14 last.
Bidders offered Tk 1.915 billion for the bonds at an auction, held at the central bank on the day, the Bangladesh Bank (BB) said in its auction result.
Of those, four bids amounting to Tk 520 million were accepted and Tk 980 million was devolved on primary dealers (PDs), according to the auction result.
The central bank of Bangladesh earlier selected 15 PDs -- 12 banks and three non-banking financial institutions -- to handle government securities in the secondary market.
"Most of the banks expect that the overall interest rate may increase in the near future in line with the central bank's latest indications," a senior treasury official of a commercial bank said.
The central bank of Bangladesh has increased its policy interest rate by 1.0 percentage point aiming to curb inflationary pressures on economy.
The interest rate on repurchase agreement (repo) auction was re-fixed at 5.50 per cent on August 19 this year from 4.50 per cent while it is on reverse repo was increased to 3.50 per cent from 2.50 per cent.
Currently, four government bonds -- 5-year, 10-year, 15-year and 20-year -- are being traded in the market.
The yield on Bangladesh government treasury bonds increased only slightly Tuesday as commercial banks are not interested in buying the bonds with a lower yield, treasury officials said.
The generally known as coupon rate yield on 15-year BGTB traded on the day rose to 8.9500 per cent from 8.9200 per cent of the previous auction, held on September 14 last.
Bidders offered Tk 1.915 billion for the bonds at an auction, held at the central bank on the day, the Bangladesh Bank (BB) said in its auction result.
Of those, four bids amounting to Tk 520 million were accepted and Tk 980 million was devolved on primary dealers (PDs), according to the auction result.
The central bank of Bangladesh earlier selected 15 PDs -- 12 banks and three non-banking financial institutions -- to handle government securities in the secondary market.
"Most of the banks expect that the overall interest rate may increase in the near future in line with the central bank's latest indications," a senior treasury official of a commercial bank said.
The central bank of Bangladesh has increased its policy interest rate by 1.0 percentage point aiming to curb inflationary pressures on economy.
The interest rate on repurchase agreement (repo) auction was re-fixed at 5.50 per cent on August 19 this year from 4.50 per cent while it is on reverse repo was increased to 3.50 per cent from 2.50 per cent.
Currently, four government bonds -- 5-year, 10-year, 15-year and 20-year -- are being traded in the market.