Dhaka, Feb. 9 -- Yields on treasury bills (T-bills) fell on Sunday as banks channelled excess liquidity into risk-free government securities amid subdued private sector credit demand ahead of the national polls.

The cut-off yield, commonly referred to as the interest rate, on the 91-day T-bills fell to 10.24 per cent from 10.40 per cent at the previous auction, while the yield on 182-day T-bills declined to 10.28 per cent from 10.34 per cent.

Meanwhile, the yield on 364-day T-bills dropped to 10.34 per cent from 10.49 per cent earlier, according to the auction results.On the day, the government raised Tk 75 billion by issuing three types of T-bills to partially finance its budget deficit.

"Most banks are keen to park their excess liqui...