Dhaka, Nov. 17 -- Yields on government securities (G-Secs) have again crossed 10 per cent as the government's appetite for fresh funds has increased ahead of the national polls scheduled for February this year.

The rise and fall of yields depend on the government's fund requirement to meet the budgetary shortfall and the liquidity situation in banks. The policy rate set by the Bangladesh Bank also influences T-bond interest rates, as banks borrow from the central bank at the repo rate - 10 per cent at present - the same as the policy rate.

The yield on 20-year Treasury bonds peaked at 12.75 per cent in March this year.

Similar to the long-term investment instrument, medium- and short-term investment tools had also gone remarkably high ...