Dhaka, Nov. 3 -- The yields on treasury bills (T-bills), particularly the short-term ones, rose sharply on Sunday as banks appeared reluctant to invest their excess liquidity in risk-free government securities ahead of the year-end closing.

The cut-off yield, generally referred to as the interest rate, on the 91-day T-bills climbed to 10.24 per cent from the previous 9.53 per cent, while that on the 182-day instrument inched up to 9.99 per cent from 9.98 per cent.

But the yield on the 364-day T-bills remained unchanged at 9.99 per cent, according to the auction results.

The government borrowed Tk 75 billion on Sunday by issuing three types of T-bills to meet its budget deficit partly.

"Most banks are reluctant to park their excess fun...