DMD Circular Letter No. 08: Selection of Benchmark Securities and Two-Way Price Quoting

Bangladesh Bank
(Central Bank of Bangladesh)
Head Office
Motijheel, Dhaka-1000
Bangladesh.
Department of Market Management

DMD Circular Letter No.: 08/2023 16 Kartik 1430 Date: ------------------- 01 November 2023

Managing Director/Chief Executive Officer All Primary Dealers operating in Bangladesh.

Regarding the selection of benchmark securities for Government Securities and Two-Way Price Quoting.

Dear Sir,

We draw your attention to DMD Circular No. 6/2020 dated November 10, 2020, and DMD Circular Letter No. 01/2023 dated January 17, 2023, on the subject cited above.

2. Through the aforementioned circulars and circular letters, in order to develop the market for Government Securities and create market-based working interest rates, 30 Treasury bonds were selected as benchmarks, with 5 bonds selected from each of the 6 categories based on the remaining maturity (Remaining Maturity) of various maturity Treasury bonds.

3. Now, the 30 bonds currently available in the market are redesignated as benchmark securities.

4. Other instructions of DMD Circular No. 6/2020 related to this matter will remain unchanged, and DMD Circular Letter No. 01/2023 dated January 17, 2023, will be considered cancelled.

5. This directive will come into effect immediately.

Yours faithfully,

Attachment: As per list.

(Mohammad Anowar Hossain)
Additional Director
Phone: 9530617
Email: dmd@bb.org.bd

Bond Code	Maturity (Years)	Issue Date	Maturity Date	Coupon Rate	Face Value (BDT)	Duration (Years)
U0924371059	5	12-Oct-19	12-Oct-24	8.10%	4,300.00	0.61
U0924211057	5	11-Sep-19	11-Sep-24	8.97%	4,500.00	1.11
U0925251052	5	15-Nov-20	15-Nov-25	8.86%	4,000.00	1.21
U0925371058	5	29-Dec-20	29-Dec-25	8.12%	4,500.00	1.49
U0925011027	2	05-Oct-23	05-Oct-25	8.90%	6,000.00	1.68
U0927841058	5	18-Jun-22	18-Jun-27	7.70%	4,499.60	3.55
U0928261058	5	11-Nov-23	11-Nov-28	8.29%	5,200.00	4.20
U0928381054	5	12-Dec-23	12-Dec-28	8.26%	6,000.00	4.45
U0928461054	5	14-Oct-23	14-Oct-28	8.75%	6,000.00	4.62
U0928061052	5	09-Sep-23	09-Sep-28	9.00%	3,500.00	4.77
U0929061101	10	21-Sep-19	21-Sep-29	9.27%	4,000.00	5.81
U0929221101	10	18-Sep-19	18-Sep-29	9.23%	4,000.00	6.13
U0930261104	10	22-Nov-20	22-Nov-30	9.15%	4,000.00	6.23
U0930381100	10	07-Jun-20	07-Jun-30	8.74%	4,500.00	6.52
U0930431103	10	17-Oct-20	17-Oct-30	8.66%	4,500.00	6.63
U0932891106	10	22-Oct-22	22-Oct-32	8.10%	4,500.00	8.64
U0932111109	10	21-Aug-22	21-Aug-32	8.10%	4,000.00	8.89
U0932231105	10	21-Sep-22	21-Sep-32	8.33%	5,500.00	9.14
U0933351100	10	15-Jun-23	15-Jun-33	8.45%	6,000.00	9.37
U0933071104	10	16-Sep-23	16-Sep-33	9.20%	3,147.55	9.79
U0935391153	15	13-Jun-20	13-Jun-35	8.90%	5,227.32	11.53
U0935441156	15	24-Oct-20	24-Oct-35	8.70%	4,713.11	11.65
U0935201204	20	25-Jan-15	25-Jan-35	8.70%	3,950.00	12.07
U0937821157	15	27-Dec-22	27-Dec-37	7.98%	4,228.00	13.49
U0937901157	15	29-Oct-22	29-Oct-37	8.55%	4,416.47	13.66
U0940401203	20	20-Jun-20	20-Jun-40	9.20%	4,500.00	16.55
U0940441209	20	24-Oct-20	24-Oct-40	8.94%	4,500.00	16.65
U0942901200	20	29-Oct-22	29-Oct-42	8.65%	5,161.28	18.66
U0942241201	20	28-Sep-22	28-Sep-42	8.95%	741.50	19.16
U0943281206	20	25-Nov-23	25-Nov-43	8.89%	850.00	19.24

Annex-5
(Reference: Clause 10:15
Maturity)
Annex-6
(Reference: Clause
15:20
Maturity)
Available
Interest Rate Spread
Annex-1
(Reference: 0:2
Maturity)
Annex-2
(Reference: Clause
2:5 Maturity)
Annex-3
(Reference: Clause
5:8 Maturity)
Annex-4
(Reference: Clause
8:10 Maturity)