2024-06-05 21:00:31
Bangladesh Financial institution has directed banks to make use of secondary market yields as a substitute of main market yields for mark-to-market-based revaluation of treasury bonds. Nevertheless, main market yields can be utilized for mark-to-market-based revaluation of Treasury payments.
An instruction on this regard has been issued from the Debt Administration Division of Bangladesh Financial institution on Tuesday (June 4).
In accordance with the round, on account of mark to market (MTM) primarily based revaluation of treasury bonds held by financial institution firms, it’s directed to transform the lower off yield of main public sale to full time period and publish as customary tenor yield and calculate the treasury bonds held on the premise of this customary tenor yield.
A secondary market yield primarily based on precise transactions of over-the-counter (OTC) nameless order matching platforms and day by day submission of two-way value quotes by means of main supplier banks with a view to creating Treasury bond valuation market-based and consistent with worldwide finest practices and constructing an lively secondary market within the nation The curve is ready. Ready yield curve and its preparation methodology is given on Bangladesh Financial institution web site.
Banks have been directed to make use of secondary market yields as a substitute of main market yields for mark-to-market-based revaluation of treasury bonds held within the HFT class. The continuing observe of utilizing main market yields for mark-to-market-based revaluation of Treasury payments will proceed. This order can be efficient instantly.