Yield rates of long-term treasury bonds up in FY18

FE Online Report | Published: July 31, 2018 16:57:02 | Updated: August 01, 2018 13:52:22


Average yield rates of the long-term treasury bonds (T-bonds) increase modestly in the past fiscal year.

Latest statistics released by the central bank showed that weighted average yield rate of 10-Year Bangladesh Government Treasury Bond (BGTB) increased to 7.41 per cent at the end of June this year which was 6.74 per cent at the end of June 2017.

In a similar vein, yield rates of 15-Year and 20-Year BGTBs increased to 7.99 per cent and 8.82 per cent respectively from 7.66 per cent and 8.00 per cent during the period under review.

Yield rate of 5-year BGTB also increased to 5.98 per cent at the end of FY18 which was 5.68 per cent at the end of FY17.

T-bonds are generally considered as long-term government securities while treasury bills (T-bills) are short-term in natures.

These are the only marketable government securities in the country.

Central bank data also showed that average yield rate of 2-year BGTB dropped to 4.71 per cent from 4.90 per cent in the past fiscal year.

Average yield rates of 182-Day and 364-Day t-bills declined to 4.20 per cent and 4.27 per cent respectively during the period under review from 4.11 per cent and 4.37 per cent.

Yield rate of 91-Day t-bill, however, increased slightly to 3.67 per cent from 3.65 per cent in the past fiscal year.

Central bank data also showed that total value of secondary trading of t-bills and t-bonds stood at Tk 153.30 billion in FY18 which was TK 400.51 billion in FY17.

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