DMD Circular Letter No. 03: Regarding the Selection of Benchmark Government Securities and Two-Way Price Quoting

50119

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

Department of Market Management

DMD Circular Letter No.: 03/2021
Date: 17 Bhadro 1428 Bang
1 September 2021 AD

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

Regarding the Selection of Benchmark Government Securities and Two-Way Price Quote.

Dear Sir,

Reference is drawn to your attention to DMD Circular No. 6/2020 issued on 10 November 2020 on the subject above.

2. Through the aforementioned circular, 30 treasury bonds were selected as benchmarks, with 5 bonds chosen from each of the 6 categories based on the remaining maturity of various maturity treasury bonds, with the aim of developing the government securities market and creating a market-based yield curve.

3. Now, in view of the maturity and tenor changes of several bonds selected as benchmarks, and to facilitate Two-Way Price Quoting by Primary Dealers, the 30 bonds described in Annexure-'A' are hereby redesignated as benchmark securities.

4. Other instructions of the DMD Circular No. 6/2020 related to this matter will remain unchanged.

5. This directive will come into force immediately.

Yours faithfully,

(Masuma Sultana)
Deputy General Manager
Phone: 9537209

Enclosure: As described

Phone: 88-02-9550448, 9554896, IP: 88-02-55665001-6, Fax: 88-02-9530479, www.bb.org.bd

Annexure-A
List of Benchmark Securities
31.08.2021

Sl. No.	ISIN	Original Maturity (Years)	Issue Date	Maturity Date	Coupon Rate	In Crore	Tenor (Remaining Maturity)
							31-Aug-21
Class-1	BD0922011020	2	8-Jul-20	8-Jul-22	6.48%	4,500	0.85
(0 to 2 Yrs)	BD0922051026	2	5-Aug-20	5-Aug-22	5.90%	4,000	0.93
	BD0922121027	2	7-Oct-20	7-Oct-22	3.64%	4,000	1.10
	BD0923241022	2	6-Jan-21	6-Jan-23	3.14%	4,500	1.35
	BD0923341020	2	7-Apr-21	7-Apr-23	2.99%	2,300	1.60
Class-2	BD0924371059	5	12-Jun-19	12-Jun-24	8.10%	4,300	2.78
(above 2 to 5 Yrs)	BD0925371058	5	29-Apr-20	29-Apr-25	8.12%	4,500	3.66
	BD0925021059	5	15-Jul-20	15-Jul-25	7.19%	4,500	3.87
	BD0925131056	5	14-Oct-20	14-Oct-25	4.36%	4,000	4.12
	BD0925211056	5	9-Dec-20	9-Dec-25	4.64%	4,000	4.27
Class-3	BD0927251100	10	18-Jan-17	18-Jan-27	6.77%	2,600	5.38
(above 5 to 8 Yrs)	BD0927101107	10	18-Oct-17	18-Oct-27	7.00%	2,800	6.13
	BD0928331109	10	20-Jun-18	20-Jun-28	7.50%	2,800	6.80
	BD0928131103	10	22-Nov-18	22-Nov-28	7.15%	3,000	7.23
	BD0929311100	10	17-Apr-19	17-Apr-29	7.74%	2,675	7.63
Class-4	BD0929221101	10	18-Dec-19	18-Dec-29	9.23%	4,000	8.30
(above 8 to 10 Yrs)	BD0930381100	10	7-May-20	7-May-30	8.74%	4,500	8.68
	BD0930431103	10	17-Jun-20	17-Jun-30	8.66%	4,500	8.80
	BD0930031101	10	22-Jul-20	22-Jul-30	7.89%	4,000	8.89
	BD0931401154	15	27-Apr-16	27-Apr-31	7.79%	2,850	9.66
Class-5 (above 10 to	BD0933101158	15	26-Sep-18	26-Sep-33	7.20%	4,500	12.07
15 Yrs)	BD0933141154	15	28-Nov-18	28-Nov-33	7.55%	4,150	12.24
	BD0935391153	15	13-May-20	13-May-35	8.90%	4,450	13.70
	BD0935201204	20	25-Nov-15	25-Nov-35	8.70%	3,950	14.24
Class-6	BD0936401209	20	27-Apr-16	27-Apr-36	8.24%	2,850	14.66
(above 15 to 20 Yrs)	BD0938141209	20	28-Nov-18	28-Nov-38	8.24%	3,000	17.24
	BD0939391209	20	26-Jun-19	26-Jun-39	9.29%	3,650	17.82
	BD0940401203	20	20-May-20	20-May-40	9.20%	3,950	18.72
	BD0940441209	20	24-Jun-20	24-Jun-40	8.94%	4,500	18.81
	BD0941451207	20	30-Jun-21	30-Jun-41	6.07%	1,500.00	19.83