Dhaka, July 16 -- The yield on five-year Bangladesh Government Treasury Bonds (BGTBs) dropped significantly on Tuesday as banks expressed willingness to invest their excess liquidity in the risk-free securities.

The cut off yield, generally known as interest rate, on the BGTBs came down to 11.05 per cent on the day from 12.40 per cent earlier, according to auction results.

However, the government borrowed Tk 30 billion on the day through issuing the BGTBs on the day to meet its budget deficit partially.

"Most banks have shown interest in investing their excess funds in BGTBs as liquidity inflows rise in the market," a senior official of the Bangladesh Bank (BB) told The Financial Express (FE) while explaining the latest market situatio...