Govt conducts Tk1,716cr Treasury bond buyback

The government conducted a Tk1,716.14 crore Treasury bond buyback auction on Thursday (October 8), marking the first such operation in Bangladesh’s government securities market.

The buyback involved two-year Treasury bonds issued on November 4, 2024, according to a Bangladesh Bank press release.

A total of 56 bids worth Tk2,016.14 crore were submitted in the auction, of which bids worth Tk1,716.14 crore were accepted in line with the rates set by the auction committee.

Bangladesh Bank said the buyback would help rebalance the government’s debt maturity profile, enhance flexibility in future financing management and create scope for more effective management of public debt costs and risks.

The central bank said the operation would also strengthen the government’s liability management and help align it with international standards, while facilitating more active and market-based debt management in the government securities market.

Bangladesh Bank said further buyback auctions could be held depending on market conditions, liquidity, investor demand and the government’s overall debt structure.