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T-bill yields show mixed movement-

FE REPORT | Monday, 11 May 2026


Yields on treasury bills (T-bills) displayed a mixed trend on Sunday as banks continued to channel excess liquidity into government securities amid weak private-sector credit demand and persistent geopolitical uncertainty.
Bankers said subdued lending appetite in the private sector has encouraged financial institutions to prefer short-term, risk-free government instruments, a trend that may continue in the coming weeks.
The cut-off yield, generally known as the interest rate, on the 91-day T-bills rose to 10.19 per cent on the day from 10.17 per cent previously, according to the auction results.
Meanwhile, the yield on 182-day T-bills remained unchanged at 10.50 per cent, while the rate on 364-day T-bills edged down to 10.67 per cent from 10.69 per cent earlier.
The government raised Tk 90 billion on the day by issuing three types of T-bills to partially finance its budget deficit.
"Most banks chose to park their excess liquidity in risk-free government securities amid subdued private sector credit demand due to ongoing geopolitical tensions," a senior official of a leading private commercial bank told The Financial Express.
Meanwhile, private sector credit growth stood at 6.03 per cent year-on-year in February 2026, unchanged from the previous month, according to the latest figures from Bangladesh Bank.
The banker also predicted that the current trend in yields on government securities may continue in the coming weeks.
Currently, four types of T-bills are traded through auctions to adjust government borrowings from the banking system. The T-bills have maturity periods of 14 days, 91 days, 182 days and 364 days.
In addition, five government bonds with tenures of two, five, 10, 15 and 20 years respectively are traded in the market.
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