, June 18 -- The government is increasingly leaning on short-term, high-cost borrowing through treasury bills as it grapples with a growing revenue shortfall in the final weeks of the current fiscal year.

In a record development, the interest rate on 91-day treasury bills surged to 12.10 percent in the latest auction conducted by Bangladesh Bank-marking the highest ever yield on this instrument.

According to central bank data, the rate has increased by 18 basis points in just ten days. On June 2, the interest rate stood at 12.02 percent, which at the time was the second-highest on record.

Treasury bills (T-bills), issued for tenures ranging from 91 to 364 days, are a key tool the government uses to meet short-term financing needs.

How...