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Call money rates in the interbank market eased slightly despite borrowing by the government through reverse repurchase agreement and auctions of treasury bills last week.
The rates fluctuated between 4.0 per cent and 8.0 per cent against the previous week's 4.50-10.0 per cent. The pressure on liquidity were seen falling a bit after most banks completed transactions on funds sought by the people leaving for hajj pilgrimage this year. The hajj flight started Thursday.
However, the commercial banks had sought cash through repo bidding. But, no bid was accepted by the central bank which, instead, siphoned off fresh cash amounting to Tk 5.0 billion at interest rates ranging between 2.60 per cent and 2.75 per cent from the market through reverse repo in the concluding days of the week, they said.
The government borrowed a total of Tk 9.844 billion Sunday through the auctions of T-bills. While, Tk 6.629 billion was flown into the market due to maturity of some treasury bills. There was, however, a net outflow of Tk 3.215 billion from the market. Bidders offered Tk 7.623 billion, Tk 100 million, Tk 2.20 billion and Tk 21 million against 28-day, 91-day, 182-day and two-year bills respectively.
The central bank, however, accepted bills amounting to Tk 7.623 billion, Tk 2.20 billion and Tk 21 million against 28-day, 182-day and two-year bills respectively. The ranges of their implicit yields were 4.00-4.05 per cent, 5.75 per cent and 6.75 per cent respectively per annum.
Most of banks were able to meet the demands of the clients from their own sources. A few of the banks and financial institutions, however, suffered from cash crisis and they resorted to borrowing from the interbank market at higher rates. The call rates, however. predominantly moved between 5.00 per cent and 6.50 per cent, they said.
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