Individual investment in government treasury bills and bonds has grown steadily over the past two years as savers seek safer instruments and better interest rates amid limited investment options and uncertainty in the financial system.

Data from Bangladesh Bank show that individual holdings in treasury bills and bonds rose to Tk 6,062 crore in December 2025, up from Tk 3,850 crore in June 2024 and Tk 1,102 crore in June 2023.

Their share in the total government securities market also increased to 0.83 per cent from just 0.3 per cent over the period.

The rise signals a gradual shift in the structure of the government securities market, which was once dominated almost entirely by banks and financial institutions.

Total investment in treasury bills and bonds reached Tk 7.27 lakh crore by December 2025.

Primary dealer banks hold the largest portion, accounting for about 38.04 per cent of the outstanding securities, followed by non-primary dealer banks with 32.87 per cent.

The central bank itself holds around 9.33 per cent. Provident, pension, trust and gratuity funds together account for 6.38 per cent, while insurance companies hold 3.96 per cent and corporate bodies 5.05 per cent.

Other investors, including finance companies, mutual funds, foreign investors and individuals, make up the remaining share.

Mutual fund investments in government securities stood at Tk 1,010 crore, while foreign individual investors held Tk 907 crore.

Market participants said the growing interest from individuals reflects the attraction of relatively high and stable returns from government securities.

In June, yields on treasury instruments ranged between about 10 and 10.67 per cent, higher than the 8 to 10 per cent typically offered by bank term deposits.

Confidence in bank deposits has also weakened in recent years as several banks faced liquidity shortages and delays in repaying depositors.

At the same time, the stock market has remained volatile, while investment in national savings certificates has slowed due to tighter rules.

With fewer reliable alternatives, investors are increasingly viewing treasury securities as a safe place to park funds.

Individuals in Bangladesh can buy Treasury bills (T-bills) and bonds (BGTB) by opening a Business Partner Identification (BP ID) through a primary dealer bank or a registered brokerage firm.

The minimum investment amount is typically Tk 1 lakh.

Investors open a beneficiary owners (BO) account and place bids through auctions conducted by Bangladesh Bank or buy the instruments in the secondary market after issuance.

Treasury bills are short-term instruments with maturities ranging from three months to one year, while treasury bonds usually carry longer tenures of two to 20 years.

These securities offer several advantages. Returns are generally higher than bank deposits, interest income is exempt from tax deduction at source, there is no investment ceiling and investors can sell the instruments in the secondary market before maturity if they need liquidity.

However, returns for existing investors may fluctuate if market interest rates change. When policy rates or market yields rise, the market price of previously issued bonds tends to fall, reducing their resale value. Conversely, if interest rates decline, the price of existing bonds usually increases.

Despite such price movements in the secondary market, investors who hold the securities until maturity continue to receive the fixed interest payments promised at the time of purchase.