Yields on treasury bills (T-bills) declined slightly on Sunday as banks increasingly invested excess liquidity in low-risk government securities amid weak private-sector credit demand and ongoing geopolitical uncertainties.

Bankers said liquidity conditions improved following the government’s disbursement of Tk 31 billion in export cash incentives, along with the Bangladesh Bank’s continued dollar purchases from commercial banks. These factors collectively added pressure on T-bill yields.

According to auction results, the cut-off yield on 91-day T-bills fell to 10.17 per cent from 10.19 per cent previously. The yield on 182-day T-bills decreased to 10.47 per cent from 10.50 per cent, while the 364-day T-bill yield edged down to 10.65 per cent from 10.67 per cent.

On the day, the government raised Tk 90 billion through the issuance of three types of T-bills to partly finance its budget deficit.

Market participants noted that banks are currently more inclined to place funds in government securities as private-sector credit demand remains subdued. A senior treasury official at a private commercial bank said geopolitical tensions have contributed to cautious lending behavior.

Bangladesh Bank data showed private-sector credit growth remained unchanged at 6.03 per cent year-on-year in February 2026, the same as the previous month.

The official also pointed out that the central bank purchased $130 million from banks last week to stabilize the exchange rate, especially amid higher remittance inflows ahead of Eid-ul-Azha. Since July 13 last year, Bangladesh Bank has bought $5.88 billion from commercial banks under the floating exchange rate regime.

Bankers expect that the current downward trend in T-bill yields may continue in the coming weeks if liquidity conditions remain stable.

Currently, the government issues four types of T-bills—14-day, 91-day, 182-day, and 364-day maturities through auctions to manage short-term borrowing needs. In addition, five types of government bonds with maturities ranging from two to 20 years are actively traded in the market.