B Mirror Report : Yields on Bangladesh treasury bills (T-bills) fell further on Sunday as banks preferred investing their excess liquidity in risk-free government securities, amid subdued private-sector credit demand ahead of the upcoming national polls.

The cut-off yield on 91-day T-bills declined to 10.14 percent from the previous 10.42 percent, while the yield on 182-day T-bills fell to 10.25 percent from 10.55 percent. The 364-day T-bill yield also dropped to 10.34 percent from 10.66 percent, according to the auction results.

On the day, the government raised Tk 80 billion through the issuance of these three types of T-bills to partially finance the budget deficit. Earlier, on January 4, yields had also fallen on similar grounds.

“Most banks are keen to invest their excess liquidity in government securities, as private-sector credit demand remains muted ahead of the national election,” a senior Bangladesh Bank (BB) official told media

According to the central bank, private-sector credit growth stood at 6.58 percent year-on-year in November 2025, up slightly from 6.23 percent in October. Meanwhile, higher remittance inflows and BB’s direct US dollar purchases have increased market liquidity, putting downward pressure on government securities yields. Since July 13, BB has bought $3.75 billion directly from banks under the free-floating exchange rate system.

The central banker added that the current downward trend in T-bill yields may continue in the coming weeks.

Currently, the government auctions four types of T-bills 14-day, 91-day, 182-day, and 364-day to manage banking system borrowings.

In addition, five government bonds with tenures of 2, 5, 10, 15, and 20 years are also traded in the market.