Dhaka, June 17 -- The yields on two types of Bangladesh Government Treasury Bonds (BGTBs) increased significantly on Tuesday as banks expressed unwillingness to invest their excess liquidity in the risk-free securities.

The cut-off yield, generally known as interest rate, on the Five-Year BGTBs rose to 12.40 per cent on the day from 11.99 per cent earlier while the yield on the 15-Year BGTBs reached at 12.59 per cent from 12.20 per cent, according to the auction results.

"Most banks have shown reluctance to invest their excess funds in the long-term securities ahead of the upcoming June closing," a senior official of the Bangladesh Bank (BB) told The Financial Express (FE) while explaining the latest market situation.

Higher demand for...