Regulatory Alerts2021-09-01
Added
DMD Circular Letter No. 03: Regarding the Selection of Benchmark Government Securities and Two-Way Price Quoting
The Department of Market Management of the Central Bank of Bangladesh redesignates 30 specific treasury bonds as benchmark government securities to facilitate two-way price quoting by primary dealers, following bond maturities and tenor changes. This designation supersedes the previous list issued in DMD Circular No. 6/2020, while all other instructions from that circular remain unchanged. The new benchmark list, effective immediately, categorizes the securities into six classes based on remaining maturity ranging from under two years to over 15 years.
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.
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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.
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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.
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Other instructions of the DMD Circular No. 6/2020 related to this matter will remain unchanged.
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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 |