Thailand: BoT gives itself greater flexibility in bond issuances for 2020

  • The central bank on 11 May 20 announced a revised bond issuance programme for 2020 to ensure an appropriate level of bond supply amid the novel coronavirus outbreak.
  • The auction days and frequency will remain as announced at the beginning of 2020, but the central bank may consider adjusting the frequency of the auction of three-and six-month bills, and fixed-coupon bonds, if necessary, it said in a statement.
  • Currently, 3- and 6-month bills are issued every week, and 1-year bills every month. 2-year fixed coupon bonds are issued every month and 3-year fixed coupon bonds are issued every odd month. 3-year floating rate bonds are issued every even month.
  • The ranges of maximum and minimum issue size per auction are expanded to THB10bn-60bn for all maturities of Bank of Thailand (BoT) bills, it said.
  • “This will allow greater flexibility in adjusting BoT bill issuance sizes to accommodate government funding plans and changes in investors’ demand,” it said.
  • BoT said that monthly bond auction schedules will continue to be announced prior to the beginning of each month on the BOT website, as has been done in previous years.
  • When necessary, BoT said it would make adjustments to the issue sizes during the month in cases where the demand for BOT bills and bonds change significantly from prior projections.

External Link : https://www.bangkokpost.com/business/1916204/bank-of-thailand-details-revised-bond-issuance-plan-for-this-year

External Link : https://www.bot.or.th/English/PressandSpeeches/Press/2020/Pages/n2463.aspx

12-May-2020


Leave a Reply