Regulatory Alerts2023-11-01
Added
DMD Circular Letter No. 08: Selection of Benchmark Securities and Two-Way Price Quoting
The Department of Market Management of Bangladesh Bank redesignates 30 specific Treasury bonds as benchmark securities, organized into six maturity-based categories. This circular supersedes and cancels DMD Circular Letter No. 01/2023 dated January 17, 2023, while other instructions from DMD Circular No. 6/2020 remain unchanged. The directive becomes effective immediately for all Primary Dealers operating in Bangladesh.
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.
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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.
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Now, the 30 bonds currently available in the market are redesignated as benchmark securities.
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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.
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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)