Dhaka, July 30 -- The yields on two types of long-term treasury bonds dropped below 11 per cent on Tuesday as banks opted to invest their excess liquidity in the risk-free instruments.

The cut-off yield, generally known as interest rate, on the 15-Year Bangladesh Government Treasury Bonds (BGTBs) came down to 10.48 per cent on the day from 12.59 per cent earlier while the yield on the 20-Year BGTBs fell to 10.55 per cent from 12.49 per cent, according to the auction results.

The sharp decline in yields on government securities -- particularly long-term BGTBs -- were driven by strong participation in the auction by a section of liquidity-rich commercial banks, according to market operators.

The ongoing lower private sector credit growth...