B Mirror Report: The yield on Bangladesh’s five-year treasury bonds fell slightly on Tuesday as banks continued to channel excess liquidity into government securities, amid weak private-sector credit demand and stronger remittance inflows.
According to auction results, the cut-off yield commonly considered the interest rate on the Bangladesh Government Treasury Bonds (BGTBs) dropped to 10.22 percent, down from 10.32 percent in the previous auction.
On the day, the government raised Tk 25 billion through the BGTBs to partially finance its budget deficit.
“Most banks are parking their excess funds in risk-free government securities as private-sector credit demand remains subdued amid ongoing geopolitical tensions,” a senior Bangladesh Bank official told The Financial Express, explaining the market trend.
Private-sector credit growth slowed to 6.03 percent year-on-year in January 2026, down from 6.10 percent a month earlier, according to central bank data.
The official also pointed out that stronger inflows of remittances have boosted liquidity in the market, putting downward pressure on BGTB yields.
Currently, five government bonds with tenures of two, five, 10, 15, and 20 years are actively traded in the market.
Additionally, the government regularly auctions four types of treasury bills (T-bills) to manage short-term borrowings from the banking system. These include 14-day, 91-day, 182-day, and 364-day maturities.
