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The yields on treasury bills (T-bills) showed a mixed trend on Sunday as banks preferred investing their excess liquidity in the government's shorter-tenure securities rather than longer-term ones.
The cut-off yield, generally known as the interest rate, on the 91-day T-bills fell to 9.89 per cent on the day from the previous 9.90 per cent.
On the other hand, the yield on 182-day T-bills rose to 9.99 per cent from 9.98 per cent.
Besides, the yield on 364-day T-bills reached 10.00 per cent from 9.94 per cent, according to the auction results.
On the day, the government raised Tk 82.50 billion by issuing three types of T-bills to partially finance its budget deficit.
"Most banks preferred investing their excess liquidity in shorter-tenure instruments rather than longer-term ones, reflecting cautious portfolio management amid the ongoing geopolitical tension," a senior executive at a leading private commercial bank told The Financial Express.
The private banker predicted the existing trend of yields on the government securities might continue in the coming weeks.
Currently, four T-bills are transacted through auctions 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 - are traded in the market.
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