Bangladesh Treasury bill yields fall below 8%

Bangladesh Treasury bill yields fell below 8% across all three maturities Sunday for the first time since October 2023, as excess bank liquidity and weak private-sector credit demand lowered government borrowing costs.

Bangladesh Bank data showed the 91-day yield at 7.65%, the 182-day yield at 7.75%, and the 364-day yield at 7.89%, according to The Business Standard.

The comparable yield was 8.13% at the Oct. 4 auction, a decline of 48 basis points in one week. At the Sept. 6 auction, yields ranged from 8.59% to 8.73%.

Private-sector credit growth has remained below 5% for six consecutive months. Banking system surplus liquidity rose 45% during the past year to more than Tk 4 lakh crore (approximately $32.44 billion), a central bank report said.

Most surplus funds have gone into government securities rather than private lending.