The interest rates on treasury bills in Bangladesh have dropped to 10-10.35% in February 2025, down from 11.97% in December 2024, driven by higher bank investment in government securities and a reduction in the government’s borrowing target. Weak private sector credit growth, which fell to 7.3% in December 2024, has led banks to redirect funds into risk-free T-bills. This has resulted in increased demand and lower yields. The government also revised its borrowing target for FY25 to Tk 99,000 crore, easing pressure on T-bill rates. In the first half of FY25, net credit from the banking system stood at Tk 14,642.54 crore, 14.79% of the revised target. Banks’ excess liquidity rose to Tk 2,15,002.2 crore by December 2024, contributing to the trend. The decline in T-bill yields is also attributed to the expectation of increased foreign loans and funding from international agencies.
Source for more details:
