Transactions of Bangladesh government’s fixed-income tradable securities in the secondary market crossed Tk 1.0 trillion level in the past fiscal year (FY21).
Statistics available with Bangladesh Bank showed that the combined value of annual secondary transactions of short and long term government securities stood at Tk 1377.70 billion (or Tk 1.37 trillion) in the past fiscal year.
The trading of treasury bills and treasury bonds in the secondary market increased by 131 per cent in FY21 over the previous fiscal year (FY20) when the transaction value recorded at Tk 594.77 billion.
Earlier in FY19, the value of secondary transaction of these bills and bonds was Tk 183.10 billion.
Treasury bills are short-term debt instruments of the government while treasury bonds are long-term in nature.
The central bank, on be- half of the government, issues the treasury bills to manage day to day liquidity. It also issues the treasury bond for mobilising long-term debt for the government to finance the budget deficit.
Selected banks are now authorised primary dealers to purchase the bills directly through the auction conducted by Bangladesh Bank.
Other banks and financial institutions are allowed to purchase and sell the bills and bonds among themselves in the secondary market as a secure investment. Individuals can also invest in these fixed-income securities.