The yields on treasury bills (T-bills) continued to rise on Sunday, as banks showed reluctance to allocate their surplus liquidity into these securities. The cutoff yield, commonly referred to as the interest rate, for the 91-Day T-bills increased to 11.24 percent, up from the previous rate of 10.90 percent. Similarly, the yield for the 182-Day T-bills climbed to 11.45 percent, compared to 11.25 percent earlier. The yield on the 364-Day T-bills also saw an increase, reaching 11.75 percent from 11.30 percent.
A senior treasury official from a prominent private commercial bank (PCB) informed The Financial Express (FE) that many banks are hesitant to invest their surplus funds in government-approved securities due to ongoing liquidity pressures in the market. He further suggested that the current upward trend in T-bill yields may persist in the upcoming months.
Conversely, a senior representative from the Bangladesh Bank (BB) disagreed with this outlook, suggesting that T-bill yields might experience a slight decline in the near future. He anticipated that the inflow of funds into the banking system could increase following the Eid-ul-Fitr festival.
On that day, the government raised Tk 90 billion by issuing three types of T-bills to help address its budget deficit. Currently, four types of T-bills are auctioned to manage government borrowing from the banking sector, with maturities of 14 days, 91 days, 182 days, and 364 days. Additionally, five government bonds with maturities of two, five, ten, fifteen, and twenty years are also available in the market.
