Treasury bill (T-bill) yields in Bangladesh have risen sharply following the introduction of new regulations for primary dealers, signalling a notable shift in the government securities market. The updated framework aims to invigorate both primary and secondary markets, directly influencing investor behaviour and bidding patterns.
According to the latest auction results, the effective yield on 91-day T-bills increased from 10.05% to 10.40%, while 182-day bills rose from 10.23% to 10.34%, and 364-day bills climbed from 10.34% to 10.49%. The government successfully raised BDT 75 billion through this auction, providing partial support for budget deficit financing.
A senior official from Bangladesh Bank stated, “Under the new primary dealer guidelines, only designated primary dealer banks are eligible to participate in auctions. This restriction has exerted upward pressure on T-bill yields.”
Earlier, the central bank had selected 24 primary dealers to improve liquidity and trading efficiency in the secondary government securities market. These dealers play a pivotal role in maintaining market stability and facilitating government borrowing processes.
Currently, the government regularly issues four types of T-bills to meet short-term financing needs. Additionally, five government bonds with maturities ranging from two to twenty years are actively traded in the market, offering long-term investment opportunities for banks and institutional investors.
Recent T-Bill Auction Results
| T-Bill Type | Previous Yield | Current Yield | Maturity |
|---|---|---|---|
| 91 days | 10.05% | 10.40% | 3 months |
| 182 days | 10.23% | 10.34% | 6 months |
| 364 days | 10.34% | 10.49% | 12 months |
Market analysts suggest that the new primary dealer structure may enhance competitive bidding, ensure greater auction transparency, and improve price discovery in government securities. Observers will be closely monitoring whether this upward trend in yields continues in forthcoming auctions.
Compared with the previous year, the recent increase indicates that both stricter participation rules and proactive government debt management measures are exerting significant influence on the market. As a result, the T-bill market in Bangladesh is expected to become more active and dynamic in the coming months, providing investors with clearer signals for short-term and long-term capital allocation.