Money Market Securities

Money Market Issued by

Securities
Federal
Treasury bills

Common
Investors

Common
Maturities

Secondary
Market Activity

Households, firms
and
financial
institutions
Households

13 weeks, 26
weeks. 1 year

High

7 days to 5 years
or longer

Nonexistent

Large banks and

saving Institutions

Firms

2 weeks to 1 year

Moderate

Bank
holding
companies,
finance
companies
and
other companies
Banks
located
outside
the
country
Banks ( exporting
firm can sell the
acceptance at a
discount
obtain
funds)
Depository
institutions
Firms
and
financial
institutions

Firms

1 days to 270
days

Low

1 day to 1 year

Nonexistent

Firms

30 days to 270
days

High

Depository
institutions
Firms
financial
institutions

1 day to 7 days

Nonexistent

1 day to 15 days

Nonexistent

Government

Retail
certificates
of
deposit (CDs)
Negotiable
certificates
of
deposit (NCDs)
Commercial
paper

Eurodollar
Deposit
Bankers
acceptances

Federal Funds

Repurchase
agreements

Banks and saving

institutions

Firms
government

and

and

Yield Volatility of T-bills in Bangladesh

(As of 27-07-2010 Auction no.255 )
T-Bill

Yield

28 days

91 days

182 days

364 days

2 5

y y
e e
a a
r r
s s

28 days

6.84%

--

91 days

8.52%

1.68%

--

182 days

9.15%

0.63%

0.63%

--

364 days

9.76%

0.61%

0.61%

0.61%

--

2 years

10.62%

0.86%

0.86%

0.86%

0.86%

5 years

10.69%

0.07%

Source : Bangladesh Bank

0.07%

0.07%

0.07%

0.07%

--

Figure 1.1: - This

is an upward
sloping yield
curve or normal
yield curve which
indicates that the
higher the
Maturity, the
higher the yield.

Recent Activity of Bangladesh Bank

about Treasury Bonds

T-Bills Issuance Calendar FY 2014-2015

Repo :

Repo is a commitment of the seller to the buyer to buy back the instrument as and when the
buyer intends to sell. This is an arrangement between seller and buyer .

Repo with Bangladesh Bank

Bids received
Auction
date

19/12/20
11

Tenor

Total bids

Total
amount
(cr Taka)

Int.
rate(%)

Total bids

01

13590.65

7.2500

Bid not
accepted.

13590.6
5

13523.66

13523.6
6

Total
18/12/20
11

Bids accepted

01
Total

0
7.2500

Amount
(cr Taka)

Bid not
accepted.
0

Cut-off
rate(%)

Special Repo with Bangladesh Bank

Auction
date

31/07/20
14

27/07/20
14

Bids received

Bids accepted

Tenor

Total bids

Amount
(cr Taka)

Range of
rate(%)

Total bids

Amount
(cr Taka)

Cut-off
rate(%)

50

10.2500

30

10.25

Total

50

30

50

30

Total

50

30

10.2500

10.25

Reverse Repo with Bangladesh Bank

Auction
date

15/12/20
14

14/12/20
14

Bids received

Bids accepted

Tenor

Total bids

Amount
(cr Taka)

Range of
rate(%)

Total bids

Amount
(cr Taka)

Cut-off
rate(%)

70

5.2500

70

5.2500

Total

70

70

25

25

Total

25

25

5.2500

5.2500

Inter-Bank Repo
Volume

Repo Tenor

Interest rates

No. of
transactions

Total amount
(cr Taka)

Range of tenor
in days

Int rate (%)

Weighted
average rate
(%)

15/12/2014

26

2926.3158

1-3

6.25-7.50

7.3700

14/12/2014

34

3542.4943

1-7

6.25-8.30

7.2700

Auction date