Regulatory Alerts2012-10-03
Added · Updated
DMD Circular No. 09: Calculation of applicable yield for devolvement in Treasury bond auction
Bangladesh Bank will devolve Treasury bonds at a yield calculated as the arithmetic mean of yields quoted in all bids submitted by primary dealers, non-PD banks, and other financial institutions, excluding outlier bids. Outlier bids are defined as those submitted with a gap of ten basis points above or below the cut-off rate decided in the previous auction of the same Treasury bond. This procedure applies to devolvements on both PD and non-PD banks.
Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh www.bb.org.bd
Debt Management Department DMD Circular No. - 09 Date: 03 October, 2012 Managing Director/Chief Executive All scheduled bank companies working in Bangladesh Dear Sir, Calculation procedure of devolvement yield in Treasury Bond auctions.
- In case of devolvement on PD and non-PD banks it has been decided that Bangladesh Bank will devolve at a yield which is the arithmetic mean of yields quoted in all bids submitted by the primary dealers(PDs), non-PD banks and other financial institutions (through PDs) in Bangladesh Government Treasury Bond(BGTB) auction, excluding ‘outliers’.
- ‘Outlier bids’ in a specific BGTB auction are those bids that are submitted by ten basis points gap(above or below) from the cut-off rate decided in the previous auction of the BGTB for the same. Please acknowledge receipt. Yours faithfully, Sd/- ( Bishnu Pada Saha ) General Manager Phone: 9530131
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