Treasury bill sales jump 4.3pc in November:BB

Business Report :

The government of Bangladesh raised Tk 31,289.13 crore through treasury bill issuances in November 2025, marking a 4.30 percent increase compared to October, according to data released by Bangladesh Bank (BB). The rise reflects the government’s ongoing effort to manage fiscal needs while maintaining liquidity in the banking system.

Bangladesh Bank’s Money Market Dynamics report shows that four auctions were held during November, covering 91-day, 182-day, and 364-day treasury bills. The weighted average yields for the bills stood at 9.99 percent, 10.03 percent, and 10.01 percent, respectively, indicating relatively stable returns for investors despite some volatility in cut-off rates.
Short-Term Securities See Fluctuating Demand

The 91-day treasury bills saw a fluctuating trend in cut-off rates. Rates fell during the first three weeks, hitting a low of 10.07 percent, before rising to 10.14 percent in the final auction. The first auction of November recorded a rate 10 basis points lower than the previous month, reflecting initially muted investor demand. Analysts note that such short-term instruments are highly sensitive to liquidity conditions in commercial banks and interbank lending rates.

For 182-day treasury bills, the cut-off rate increased by 30 basis points in the second week, then gradually declined over the subsequent auctions. The trend indicates that while initial investor appetite for medium-term securities was strong, cautious sentiment set in as market participants weighed potential movements in inflation and central bank policy.
Long-Term Bills Attract Investors Amid Rising Rates
In contrast, the 364-day treasury bills exhibited a clear upward trajectory, with rates climbing from 9.99 percent at the start of November to 10.25 percent in the final auction. Market analysts suggest that long-term securities are increasingly attractive to institutional investors seeking stable returns amid expectations of moderate interest rate hikes in the coming months.
Financial experts believe that the November auctions reflect a cautious but consistent demand for government securities. “The rise in long-term yields indicates that investors are willing to lock in returns for a longer horizon, possibly anticipating inflationary pressures or adjustments in policy rates,” said a Dhaka-based treasury analyst.
The government’s treasury bill operations not only help finance fiscal expenditures but also serve as a key tool for regulating liquidity in the banking sector. With a growing economy and rising domestic borrowing needs, market participants will closely monitor future auctions and central bank monetary signals to adjust their investment strategies.
As Bangladesh navigates inflationary pressures, external sector uncertainties, and fiscal demands, treasury bills remain a primary instrument for balancing short-term liquidity with long-term investment stability. Analysts expect the December auctions to reflect continued demand for long-term instruments, with potential shifts in cut-off rates driven by domestic credit conditions and macroeconomic policy decisions.