T-bill Yields show mixed trend amid weak credit demand

Date:

Post View:

T-bill Yields show mixed trend amid weak credit demand

Yields on Treasury Bills (T-bills) showed a mixed movement on Sunday as banks continued to invest surplus liquidity in government securities, driven by weak private-sector credit demand and ongoing geopolitical uncertainty.

Bankers said the subdued appetite for private lending has pushed financial institutions toward short-term, risk-free government instruments, a trend likely to persist in the near term.

According to auction results, the cut-off yield on 91-day T-bills rose slightly to 10.19 per cent from 10.17 per cent earlier. The yield on 182-day T-bills remained unchanged at 10.50 per cent, while the rate on 364-day T-bills edged down to 10.67 per cent from 10.69 per cent.

On the day, the government raised Tk 90 billion through the issuance of three types of T-bills to partly finance its budget deficit.

A senior official of a private commercial bank told The Financial Express that most banks are parking excess liquidity in government securities due to weak private sector credit demand amid geopolitical tensions.

Private sector credit growth stood at 6.03 per cent year-on-year in February 2026, unchanged from the previous month, according to Bangladesh Bank data.

Bankers expect the current trend in government securities yields to continue in the coming weeks.

At present, four types of T-bills 14-day, 91-day, 182-day and 364-day are traded through auctions. In addition, government bonds with maturities of two, five, 10, 15 and 20 years are also actively traded in the market.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_img

Popular

More like this
Related

Bangladesh to import 3 more spot LNG cargoes by mid-june

B Mirror Report:  The government is set to purchase...

DBH Finance declares 15% cash dividend

B Mirror Report: Listed non-bank financial institution DBH Finance PLC...

IPDC Finance Q1 profit jumps 79%

B Mirror Report: IPDC Finance PLC reported a 78.52...

DCCI Calls for integrated logistics ecosystem to boost export capacity

B Mirror Report: The Dhaka Chamber of Commerce and...