Yields on longer-term treasury bills (T-bills) edged higher on Sunday as banks remained cautious about committing excess liquidity ahead of the year-end closing and the upcoming national election.

According to auction results, the cut-off yield on the 182-day T-bills rose to 10.65 per cent from 10.57 per cent at the previous auction, while the yield on the 364 day T-bills increased marginally to 10.72 per cent from 10.70 per cent. In contrast, the yield on the shorter 91-day T-bills eased slightly to 10.53 per cent from 10.55 per cent earlier.

The government raised Tk 70 billion through the issuance of three T-bill tenors as part of its efforts to partially finance the budget deficit.

A senior Bangladesh Bank (BB) official attributed the rise in longer-term yields to banks’ reluctance to lock in funds ahead of the December 31 year-end closing. “Most banks are hesitant to invest in longer-term T-bills, particularly the 182-day and 364-day instruments, at this stage,” the official told Media, explaining the latest market developments.

He also noted that banks are adopting a cautious portfolio strategy in view of the national election scheduled for February 12, 2026, aiming to avoid potential risks during the pre-election period. The central banker added that the current trend in government securities yields is likely to continue in the coming weeks.

At present, four types of T-bills 14-day, 91-day, 182-day and 364-day are auctioned regularly to manage government borrowing from the banking system. In addition, five government bonds with maturities of two, five, 10, 15 and 20 years are actively traded in the market.