BM Desk : Because banks were hesitant to put surplus liquidity into treasury bills and bonds before the Eid-ul-Fitr holiday, the government raised the interest rates on these instruments.
According to data from Bangladesh Bank, T-bill yields increased from 10% in February to between 10.9% and 11.3% in the most recent auction in March.

In order to preserve liquidity for the festival period, banks have been hesitant about allocating their excess cash to government assets, which has caused yields to rise.
Bangladesh celebrated Eid-ul-Fitr, one of the largest Muslim religious holidays, on March 31.

Through an auction of 91-day, 182-day, and 364-day treasury bills, the government borrowed Tk 6,652 crore on March 24 at interest rates of 10.90%, 11.25%, and 11.3%, respectively.
In contrast, rates for the same maturities were 10.34%, 10.55%, and 10.73% in the auction held on March 2.
The rates for the identical maturities were 10.35%, 10.24%, and 10.35% as of February 17, 2025.

With excess money rising from Tk 1.95 lakh crore in June 2024 to Tk 2.34 lakh crore in January 2025, banks’ liquidity has actually increased significantly. Nevertheless, the usual flow of money into government debt instruments is not occurring.

After the Eid holiday, the central bank plans to phase out the 28-day term repo facility, which might put strain on liquidity.
Therefore, banks have been deterred from releasing their cash reserves since the 28-day repo window was removed on April 3.
The final two months of the fiscal year 2024–2025, May and June, are expected to see a rise in government borrowing from the banking sector.

The government lowered the initial Tk 1.37 lakh crore bank borrowing target for FY25 to Tk 99,000 crore.
The government’s net credit from the banking sector for the July–February period of FY25 was Tk 26,225 crore, or just 26.5% of the updated goal.

This involved returning Tk 59,780 crore to the Bangladesh Bank and taking out a net loan of Tk 86,000 crore from scheduled banks.
Treasury bonds are a long-term borrowing instrument, whereas Treasury bills are a short-term borrowing instrument.
In December 2024, the rate was close to 12 percent.

The yields were 11.50 percent, 11.87 percent, and 11.9 percent as of December 30, 2024.

The government primarily finances its activities through borrowing from the financial sector, which includes the central bank, by issuing treasury bills and bonds. In March, the weighted average yields for Bangladesh Government Treasury Bonds (BGTBs) across various maturities—2-year, 5-year, 10-year, 15-year, and 20-year—rose to 11.20%, 11.5%, 12.05%, 12.28%, and 12.50%, respectively. This marks an increase from the previous month’s yields of 10.98%, 10.47%, 10.32%, 11.92%, and 11.95%