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The yield on five-year Bangladesh government treasury bonds (BGTBs) increased significantly on Tuesday as banks expressed their unwillingness to invest funds in the securities before the upcoming Eid festival.
The cut-off yield, generally known as interest rate, on the BGTBs rose to 11.50 per cent on the day from 10.47 per cent earlier, according to auction results.
The government borrowed Tk 40 billion through issuing the BGTBs on the day to partially meet its budget deficit.
Currently, five government bonds, with tenures of two, five, 10, 15 and 20 years, respectively, are traded on the market.
Besides, four treasury bills (T-bills) are transacted through auction to adjust government borrowings from the banking system.
The T-bills have 14-day, 91-day, 182-day, and 364-day maturity periods.
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