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The yields on Treasury bills (T-bills) increased significantly on Sunday as banks expressed unwillingness to invest their excess liquidity in the securities before the Eid festival.
The cut-off yield, generally known as interest rate, on the 91-day T-bills rose to 10.75 per cent from 10.35 per cent of the previous level, while the yield on the 182-day T-bills reached 10.90 per cent from 10.84 per cent from the earlier level.
However, the yield on 364-day T-bills rose to 11.09 per cent on the day from 10.79 per cent earlier, according to the auction results.
The government borrowed Tk 70 billion on the day through issuing three types of T-bills to partially 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.
Furthermore, five government bonds, with tenures of two, five, 10, 15, and 20 years respectively, are traded on the market.