Yield rates of t-bills, bonds up in 2017

The yield rates of the treasury-bills and treasury-bonds increased modestly in the just-concluded year, according to the latest statistics of the central bank.

It showed the returns of 91-day, 182-day and 364-day t-bills standing at 3.38 per cent, 3.86 per cent and 4.35 per cent respectively by the end of December (December 26 to be precise).

These are respectively up by 0.31 per cent from 2.97 per cent, 0.72 per cent from 3.14 per cent and 0.82 per cent from 3.53 per cent in January of the past year.

T-bills are short-term government securities and transacted through regular auctions while t-bonds are long-term government securities.

Again, weighted average rates of t-bonds with different tenures also increased moderately.

The yield rate for 2-year Bangladesh Government Treasury Bond (BGTB) increased to 5.03 per cent by the end of December from 4.23 per cent in January last year.

The returns for 5-year and 10-year t-bonds increased to 5.90 per cent and 7.17 per cent from 5.79 per cent and 6.65 per cent respectively during the period under review.

Again, the weighted average yields on 15-year and 20-year BGTB stood at 7.93 per cent and 8.25 per cent respectively in December, 2017, which were 7.47 per cent and 7.78 per cent in January of the same year.

The central bank data further showed that the weighted average yields on 30-Day BB Bill remained the same at 2.97 per cent throughout the year except in June and July when it dropped to 2.96 per cent.