Trading of the fixed income government securities in the secondary market dropped sharply in the third quarter of the current fiscal year.
Statistics available with the central bank showed that value of secondary trading of treasury bills and treasury bonds dropped to Tk 38.36 billion in January-March period or third quarter of FY18.
The amount was Tk 45.46 billion in Q1 and Tk 54.69 billion in Q2.
T-bonds are long-term fixed income government securities while t-bills are considered as short-term in nature.
Bangladesh Bank statistics also showed that value of the secondary trading of the fixed income government securities in the first nine months of the current fiscal year came down to one-third level of the same period of the previous fiscal year.
Total amount of secondary trading stood at Tk 138.51 billion in July-March period of the current fiscal year which was Tk 337.46 billion in the same period of FY17.
Currently, 20 commercial banks are performing as primary dealers participate directly in the primary auctions.
Other bank and non bank investors can participate in primary auctions and in secondary trading through their nominated primary dealers.
Annual turnover of the secondary trading of the t-bills and t-bonds stood at Tk 400.51 billion in FY17.