Buyers can also participate directly in auctions held by Bangladesh Bank through commercial banks. Since Treasury bills are short-term investments, both the principal and profit are paid together at maturity.

Interest Rates

Treasury bill rates vary depending on maturity. According to Bangladesh Bank data from April 29:

91-day bills: 10.17%

182-day bills: 10.49%

364-day bills: 10.64%

Treasury bonds generally offer higher returns:

2–3 years: 10.2% to 10.6%

5 years: 10.75%

10 years: 10.98%

15 years: 11.15%

20 years: 11.23%

Who Can Invest and How

Government bills and bonds are considered risk-free, and individuals from all professions can invest in them. Unlike other bonds, there is no upper investment limit, so investors can invest any amount.

The minimum investment is BDT 100,000. Eligible investors include residents, non-residents, banks, non-bank financial institutions, insurance companies, pension funds, and corporate entities. These securities are also tradable in the secondary market.

To invest, a Business Partner Identification (BP ID) account must be opened with Bangladesh Bank, usually through a commercial bank. Required documents include:

National ID (NID)

Tax Identification Number (TIN)

Photographs of the applicant/nominee

Bank account details

Investors can also buy from the secondary market by issuing a cheque equal to the bond value to a designated bank branch.

At maturity, both principal and interest are transferred to the relevant branch through the Treasury Management Department. However, bonds can be sold before maturity by notifying the Primary Dealer (PD) bank.

Two New Primary Dealer (PD) Banks

The government has recently appointed two new private banks as Primary Dealers, increasing the total number from 24 to 26. The newly appointed banks are BRAC Bank and Pubali Bank.

According to a letter issued by the Finance Division under the Ministry of Finance, the decision was communicated to the Managing Directors of the two banks.

Commenting on the appointment, Tareq Refat Ullah Khan said that the bank had applied a few months earlier and welcomed the approval, noting that they will now be able to play a role in the bond market as a Primary Dealer.