BM Desk: Due to banks’ reluctance to allocate their spare liquidity to Treasury bills (T-bills) prior to the Eid holiday, the rates on these instruments rose sharply on Sunday. While the yield on the 182-day T-bills increased from 10.84 percent to 10.90 percent, the cut-off yield, sometimes referred to as the interest rate, on the 91-day T-bills increased from 10.35 percent to 10.75 percent. However, the auction results showed that the yield on 364-day T-bills increased to 11.09 percent on the day from 10.79 percent earlier.

The government raised Tk 70 billion today by issuing three different types of T-bills to help cover its budget shortfall.

At present, there are four types of T-bills being auctioned to manage the government’s borrowing from the banking sector. These T-bills have maturity periods of 14 days, 91 days, 182 days, and 364 days.

In addition, five types of government bonds, with durations of two, five, 10, 15, and 20 years, are available for trading in the market.