Regulatory Alerts2023-01-17
Added
DMD Circular Letter No. 01: Selection of Benchmark Securities and Two-Way Price Quoting
The Department of Market Development of Bangladesh Bank redesignates 30 specific Treasury bonds as benchmark securities based on their remaining maturity, replacing the previous selection established by Circular No. 6/2020 and Circular Letter No. 8/2021. This directive explicitly cancels Circular Letter No. 8/2021 dated December 23, 2021, while maintaining all other instructions from Circular No. 6/2020. The new benchmark list and associated two-way price quoting requirements take effect immediately for all Primary Dealers operating in Bangladesh.
Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000 Bangladesh. Department of Market Development
DMD Circular Letter No.: 01/2023 03 Magh 1429 Date: ------------------- 17 January 2023
Managing Director/Chief Executive Officer All Primary Dealers operating in Bangladesh.
Regarding: Determination of Benchmark Securities for Government Securities and Two-Way Price Quoting.
Dear Sir,
We draw your attention to DMD Circular No. 6/2020 issued on November 10, 2020, and DMD Circular Letter No. 8/2021 issued on December 23, 2021, on the subject cited above.
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Through the aforementioned circular and circular letter, 30 Treasury bonds were selected as benchmarks, with 5 bonds chosen from each of the 6 categories based on the remaining maturity of various Treasury bonds, with the aim of developing the government securities market and creating a market-based operational framework.
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Now, the existing 30 bonds from the Treasury bonds currently available in the market are redesignated as benchmark securities.
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All other instructions of DMD Circular No. 6/2020 regarding this matter will remain unchanged, and DMD Circular Letter No. 8/2021 issued on December 23, 2021, will be considered cancelled.
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These instructions will take effect immediately.
Yours faithfully,
Attachment: As per list.
(Mohammad Anwar Hossain) Additional Director Phone: 9530511 E-mail: dmd@bb.org.bd
| ISIN | Maturity (Years) | Issue Date | Maturity Date | Coupon Rate | Face Value | Duration |
|---|---|---|---|---|---|---|
| BD0923591020 | 2 | 03-02-21 | 03-02-23 | 4.80% | 4,500.00 | 0.84 |
| BD0924871025 | 2 | 08-01-22 | 08-01-24 | 7.21% | 4,500.00 | 1.44 |
| BD0924371059 | 5 | 12-01-19 | 12-01-24 | 8.10% | 4,300.00 | 1.45 |
| BD0924011028 | 2 | 06-01-22 | 06-01-24 | 7.40% | 4,000.00 | 1.51 |
| BD0924131024 | 2 | 06-06-22 | 06-06-24 | 7.45% | 4,500.00 | 1.77 |
| BD0925371058 | 5 | 29-08-20 | 29-08-25 | 8.12% | 4,500.00 | 2.33 |
| BD0925021059 | 5 | 15-01-20 | 15-01-25 | 7.19% | 4,500.00 | 2.54 |
| BD0926021108 | 10 | 20-01-16 | 20-01-26 | 7.59% | 2,700.00 | 3.55 |
| BD0927841058 | 5 | 18-05-22 | 18-05-27 | 7.70% | 4,499.60 | 4.38 |
| BD0927021057 | 5 | 13-01-22 | 13-01-27 | 7.89% | 4,500.00 | 4.53 |
| BD0928331109 | 10 | 20-01-18 | 20-01-28 | 7.50% | 2,800.00 | 5.47 |
| BD0929311100 | 10 | 17-08-19 | 17-08-29 | 7.74% | 2,675.00 | 6.29 |
| BD0930381100 | 10 | 07-05-20 | 07-05-30 | 8.74% | 4,500.00 | 7.35 |
| BD0930431103 | 10 | 17-01-20 | 17-01-30 | 8.66% | 4,500.00 | 7.46 |
| BD0930031101 | 10 | 22-01-20 | 22-01-30 | 7.89% | 4,000.00 | 7.56 |
| BD0931401154 | 15 | 27-08-16 | 27-08-31 | 7.79% | 2,850.00 | 8.32 |
| BD0931561106 | 10 | 19-06-21 | 19-06-31 | 6.80% | 4,500.00 | 8.80 |
| BD0932851100 | 10 | 25-05-22 | 25-05-32 | 8.00% | 4,300.00 | 9.40 |
| BD0932891106 | 10 | 22-01-22 | 22-01-32 | 8.10% | 4,500.00 | 9.48 |
| BD0932111109 | 10 | 21-09-22 | 21-09-32 | 8.10% | 4,000.00 | 9.72 |
| BD0933101158 | 15 | 26-09-18 | 26-09-33 | 7.20% | 4,500.00 | 10.74 |
| BD0933141154 | 15 | 28-02-18 | 28-02-33 | 7.55% | 4,150.00 | 10.91 |
| BD0935441156 | 15 | 24-01-20 | 24-01-35 | 8.70% | 4,499.30 | 12.48 |
| BD0935201204 | 20 | 25-02-15 | 25-02-35 | 8.70% | 3,950.00 | 12.90 |
| BD0937821157 | 15 | 27-08-22 | 27-08-37 | 7.98% | 4,228.00 | 14.32 |
| BD0938141209 | 20 | 28-02-18 | 28-02-38 | 8.24% | 3,000.00 | 15.91 |
| BD0939391209 | 20 | 26-01-19 | 26-01-39 | 9.29% | 3,650.00 | 16.49 |
| BD0940401203 | 20 | 20-05-20 | 20-05-40 | 9.20% | 4,500.00 | 17.38 |
| BD0940441209 | 20 | 24-01-20 | 24-01-40 | 8.94% | 4,500.00 | 17.48 |
| BD0942901200 | 20 | 29-01-22 | 29-01-42 | 8.65% | 4,413.03 | 19.49 |
Category-1 (Maturity: 0 to 2 Years) Category-2 (Maturity: Above 2 to 5 Years) Category-3 (Maturity: Above 5 to 8 Years) Category-4 (Maturity: Above 8 to 10 Years) Category-5 (Maturity: Above 10 to 15 Years) Category-6 (Maturity: Above 15 to 20 Years)
Redenomination Face Value of Treasury Bonds