The central bank on Monday did not accept any bids from banks despite announcing auction of both 7 and 14-day durations for the Bangladesh Bank bill.
The possible reason was that Bangladesh Bank was not interested in accepting the yield demanded by the banks of both durations, said an official of the central bank.
"We were very disappointed that Bangladesh Bank didn’t accept any of the bids," said a bank official who placed bid at the auction.
BB had fixed August 16 for the auction to take place and asked banks and non-bank financial institutions to place bids.
The first auction of the BB Bill was held at August 9 to mop up excess liquidity from the banking sector. The central bank had suspended the auction of BB Bill since April 2018.
Surplus liquidity in the banking industry stood at Tk 231,462 crore as of June, up 66 per cent year-on-year, as per the BB data.
