Secondary trading of treasury bills, bonds up by 87 pc in July-Jan

Secondary transactions of the government’s fixed-income tradable securities increased by 87 per cent in the first seven months of the current fiscal year (FY24) over the same period of the past fiscal.

Statistics available with the central bank showed that the combined value of the secondary transactions of the treasury bills and treasury bonds stood at Tk 1.12 trillion in July-January period of the current fiscal year against Tk 0.63 trillion in the same period of FY23.

Earlier, in the first seven months of FY22, the value of the secondary transactions of the treasury bills and treasury bonds was recorded at Tk 1.47 trillion.

Thus, the secondary trading of these securities rebound robustly in the first seven months of the current fiscal year after it had declined sharply by 59 per cent in same period of FY23.

Treasury bills are short-term debt instruments of the government while treasury bonds are long-term in nature.

Bangladesh Bank, on be- half of the government, issues the treasury bills to manage day to day liquidity. It also issues the treasury bonds for mobilising long-term debt for the government to finance the budget deficit.

Selected banks are now authorised primary dealer to purchase the bills and directly through the auction conducted by Bangladesh Bank.

Other banks and financial institutions are allowed to purchase and sale the bills and bonds among themselves in the secondary market as a secure investment. Individuals can also invest in these fixed-income securities.

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