Lower credit growth to pvt sector T-Bonds interest rates fall ---------------------------------------------------- The interest rates of Bangladesh Government Treasury Bonds (BGTBs) declined Tuesday, mainly due to lower credit growth to the private sector amid the ongoing political turmoil, treasury officials said. The yield, generally known as coupon interest rate, on the 15-year BGTB fell to 12.29 per cent on the day from 12.42 per cent of the previous auction, held on October 22 last. The yield on the 20-year BGTB came down to 12.33 per cent from 12.48 per cent. The yields on BGTBs have been re-fixed in line with the market requirement, a senior official of the Bangladesh Bank (BB) told the FE. The yields declined Tuesday after nearly two years, a senior treasury official of a leading private commercial bank told the FE. He also said a good number of commercial banks have rushed to offer bids in the auction for investing their excess liquidity in the risk-free government bonds. There is no alternative option available right now to invest our excess liquidity, except the government-approved securities, to minimise the cost of funds. Lower credit demand from the private sector has encouraged the banks to invest more in the government securities in recent times, he added. The declining trend in the private sector credit growth continued until September last, due to the ongoing political uncertainty, centring the next general election. The rate of the private sector credit growth came down to 11.07 per cent or Tk 465.118 billion in September from 11.33 per cent or Tk 469.587 billion in August 2013. The rate was 19.88 per cent or Tk 696.620 billion in September 2012. The bankers also said the yields on the BGTBs may fall in the coming months, if the existing confrontational political situation continues. Currently, five government bonds - 2-year, 5-year, 10-year, 15-year and 20-year - are being traded in the market.
Posted on: Wed, 27 Nov 2013 17:43:26 +0000
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