Treasury bill (T-bill) yields, especially long-term ones, increased on Sunday as banks seemed hesitant to hold extra cash in government securities before the year-end close.

While the yield on 182-day T-bills increased from 10.21% to 10.57%, the cut-off yield on 91-day T-bills stayed at 10.55%. According to auction data, the yield on 364-day T-bills increased marginally to 10.70% from 10.69%.

In order to partially cover its budget shortfall, the government issued three different kinds of T-bills that day, borrowing Tk 70 billion.

A senior Bangladesh Bank (BB) official told The Media, “Most banks are reluctant to park excess cash in longer-term T-bills — particularly the 182-day and 364-day — ahead of the December 31 year-end closing,” describing the most recent state of the market.

In anticipation of the February 12, 2026, national election, he continued, banks are carefully managing their assets. Additionally, the central banker forecast that the present T-bill yield pattern might persist in the upcoming weeks.

Currently, four T-bills with maturities of 14 days, 91 days, 182 days, and 364 days are used to control government borrowings from the banking sector through auctions.
In addition, the market is used to trade five government bonds, each with a duration of two, five, ten, fifteen, and twenty years.