The yields on treasury bills (T-bills) climbed further on Sunday as commercial banks continued to show caution in investing their surplus liquidity in risk-free government securities.
According to the central bank’s auction data, the cut-off yield for the 91-day T-bill increased to 11.45 percent, up from 11.24 percent at the previous auction. Similarly, the 182-day bill saw its yield rise to 11.75 percent from 11.45 percent. The yield on the 364-day bill also moved upward, reaching 11.86 per cent from the earlier rate of 11.75 percent.
The upward shift in yields reflects the banking sector’s current preference to hold back liquidity amid tightening financial conditions. Despite the government’s borrowing of Tk 90 billion through the sale of these short-term instruments on the day, banks’ cautious stance has continued to exert upward pressure on interest rates.
The auction involved three categories of T-bills—91-day, 182-day, and 364-day—which are part of the four tenors currently used by the government to finance short-term needs. The fourth, a 14-day T-bill, was not issued during Sunday’s auction.
