The interest rate on treasury bills (T-bills) fell significantly on Sunday, as commercial banks rushed to offer bids in auctions, officials said.
The yield, generally known as interest rate, on 91-day T-bills came down to the range of 6.44-6.55 per cent on the day from 6.50-6.70 per cent of the previous auction, held on August 31 last. The yield on 364-day T-bills dropped to the range of 7.47-7.54 per cent from 7.70-7.84 per cent of the previous auction held on August 24 last.
Bidders offered Tk 22.14 billion and Tk 23.38 billion against pre-targeted amounts of Tk 7.50 billion each for the 91-day and 364-day T-bills respectively, according to the auction results.
Of the amounts, a total of Tk 15 billion was accepted for the government-approved securities.
"The yield on T-bills decreased, because the amount bidders offered was around three times higher than each of the targeted amounts," a senior official of the Bangladesh Bank (BB) told the FE after the auctions.
The central bank official also said the interest on T-bills was fixed in line with the market demand.
"Such a declining trend of yield may continue in the coming months, if the foreign currency-denominated loan is available to the corporate entities," a senior treasury official of a leading private commercial bank told the FE.
He also said most corporate entities were preferring to borrow foreign currency-denominated loans from overseas sources at lower interest rates.
Currently, three T-bills are being transacted through auctions to adjust the government's borrowing from the banking system. The T-bills have 91-day, 182-day and 364-day maturity periods.
Furthermore, five government bonds with durations of two, five, 10, 15 and 20 years are being traded in the market.
Yield on T-bills falls on bidders\\\' rush
FE Report | Published: September 08, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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