Central bank makes changes to bond schedule

Economy January 11, 2018 18:22

By The Nation

The Bank of Thailand (BOT) regularly issues BOT bonds as an instrument of monetary policy to manage money market liquidity while fostering a liquid and efficient debt securities market in Thailand.

The BOT communicates the planned programme of issuance of BOT bonds annually to enhance the effectiveness of market participants’ liquidity management.

For 2018, the planned programme of issuance of BOT bonds has been put together following consultations with market participants, taking into consideration projected liquidity conditions, the government’s funding plans and bond market conditions. An auction schedule for issuance of the two-year bond will be changed from every even month to every month, in accordance with the elevated liquidity conditions.

The new issuance of the two-year bonds will be changed to February, May, August and November, with each issue reopened once a month in the two following months in order to enhance its secondary market liquidity.

For other types of bonds, the auction days of the week and issuance frequencies will remain the same.