Yields on T-bills rise slightly

The yields on Treasury bills (T-bills) increased slightly on Sunday as banks expressed unwillingness to invest their excess liquidity in short-term securities.

The cut-off yield, generally known as the interest rate, on the 91-day T-bills, rose to 10.35 per cent from 10.34 per cent at the previous level, while the yield on the 182-day T-bills reached 10.84 per cent from 10.55 per at the earlier level.

However, the yield on 364-day T-bills rose to 10.79 per cent on the day from 10.73 per cent earlier, according to the auction results.

The government borrowed Tk 70 billion on the day by issuing three types of T-bills to meet its budget deficit.

Currently, four 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.

The bills are short-term investment tools issued through auctions conducted by the central bank on behalf of the government.

Furthermore, five government bonds, with tenures of two, five, 10, 15, and 20 years, respectively, are traded on the market.

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