Dhaka, Nov. 19 -- The yield on 10-year treasury bonds increased significantly on Tuesday, as banks were reluctant to invest surplus funds in long-term government securities aiming to manage their portfolios efficiently.

The cut-off yield, generally known as interest rate, on the Bangladesh Government Treasury Bonds (BGTBs), rose to 10.39 per cent on the day from 9.99 per cent earlier, according to auction results.

However, the government borrowed Tk 25 billion on the day through issuing the BGTBs to partially meet its budget deficit.

"Most banks are reluctant to park their excess funds in the long-term securities for managing their portfolios efficiently," a senior treasury official at a leading private commercial bank (PCB) told The F...