T-bill yields mixed

Yields on treasury bills showed a mixed trend on Sunday, reflecting banks' growing preference for shorter-term government securities as they navigate excess liquidity and weak private sector credit demand.

The shift towards short-tenure instruments highlights cautious liquidity management by banks amid economic uncertainty, even as the government continues to rely on domestic borrowing to finance its budget deficit.

The cut-off yield, generally known as the interest rate, on 91-day T-bills remained unchanged at 10.17 per cent on the day from the previous level, according to the auction results.

In contrast, the yield on 182-day T-bills edged up to 10.50 per cent from 10.49 per cent, while the rate on

364-day T-bills rose to 10.69 per cent from 10.64 per cent.

The government raised Tk 90 billion on the day by issuing three types of T-bills to partially finance its budget deficit.

"Most banks opted to park their excess liquidity in shorter-tenure, risk-free government securities amid subdued private sector credit demand due to ongoing geopolitical tensions," a senior official of Bangladesh Bank told The Financial Express.

Meanwhile, private sector credit growth stood at 6.03 per cent year-on-year in February 2026, remaining unchanged from the previous month, according to the central bank's latest figures.

The central banker also predicted that the current trend in yields on government securities may continue in the coming weeks.

Currently, four T-bills are transacted through auctions to adjust government borrowings from the banking system. These have maturity periods of 14 days, 91 days, 182 days and 364 days.

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

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