Staff Reporter :
Yields on Treasury bills (T-bills) saw a significant increase on Sunday as banks showed reluctance to invest their excess liquidity in the securities ahead of the Eid festival.
The cut-off yield, commonly referred to as the interest rate, on the 91-day T-bills rose to 10.75 per cent, up from the previous level of 10.35 per cent, while the yield on the 182-day T-bills climbed to 10.90 per cent, compared to the earlier level of 10.84 per cent.
These bills are short-term investment instruments issued through auctions conducted by the central bank on behalf of the government.
Meanwhile, the yield on the 364-day T-bills increased to 11.09 per cent, up from 10.79 per cent earlier, according to the auction results.
On the day, the government borrowed Tk 70 billion by issuing three types of T-bills to help meet its budget deficit.
Currently, four types of T-bills are transacted through auction to manage government borrowings from the banking system. These T-bills have maturity periods of 14 days, 91 days, 182 days, and 364 days.
In addition, five government bonds with tenures of two, five, 10, 15, and 20 years respectively are also traded on the market.
