91-Day T-Bill Rate Falls to 11.51%

Economic Tag: Govt.

The yields on treasury bills (T-bills) in Bangladesh fell slightly as banks opted to invest excess liquidity in short-term securities. The interest rate on 91-day T-bills dropped to 11.51%, and on 182-day and 364-day T-bills to 11.75%. The government raised Tk 75 billion by issuing these T-bills to help address its budget deficit. A central bank official explained the decline in yields was due to reduced public spending by the interim government, suggesting that this trend may continue. Additionally, a treasury head from a private bank anticipated a further slight decrease in yields on government treasury bonds (BGTBs) in the upcoming auction.  Currently, four types of T-bills and five government bonds, with varying maturities, are auctioned to meet government borrowing needs.

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