Yields on treasury bills fell again on Sunday as Bangladesh Bank purchased a further US$123 million from eight banks, injecting liquidity into the market while seeking to stabilise the exchange rate of the US dollar against the taka.
The cut-off yield, commonly known as the interest rate, on the 91-day T-bills declined to 10.02 per cent from 10.11 per cent previously, while the yield on the 182-day papers fell to 10.11 per cent from 10.22 per cent.
Meanwhile, the yield on the 364-day T-bills dropped to 10.07 per cent from 10.23 per cent earlier, according to the auction results.
On February 15, yields on the three tenors had also declined for the same reason.
The government raised Tk 75 billion on the day by issuing the T-bills to partially finance its budget deficit.
“Most banks are eager to invest their excess liquidity in government securities, as private sector credit demand remains subdued amid uncertainty following the just-concluded national election,” a senior official of Bangladesh Bank told The Financial Express, explaining the latest market dynamics.
Private sector credit growth stood at 6.10 per cent year-on-year in December 2025, down from 6.58 per cent a month earlier, according to the central bank’s latest data.
Market operators, however, said the central bank’s US dollar purchases injected liquidity into the market in the form of Bangladesh Taka (BDT), exerting downward pressure on bond yields.
As part of its ongoing open market operations, the central bank on Sunday purchased $123 million from eight banks through an interbank spot market auction to help stabilise the exchange rate of the US dollar against the local currency.
The amount was bought under the Multiple Price Auction method at a cut-off rate of Tk 122.30 per dollar, central bank officials said.
Since July 13 last year, the central bank has purchased a total of $5.38 billion directly from banks under the prevailing free-floating exchange rate regime, according to Bangladesh Bank data.
Officials said the central bank is buying US dollars from scheduled banks to maintain exchange rate stability, a move aimed at preserving export competitiveness and supporting sustained remittance inflows.
They added that such interventions are also helping to gradually rebuild the country’s foreign exchange reserves.
https://thefinancialexpress.com.bd/stock/bangladesh/stocks-rise-in-early-trade