The Bank of Thailand (BoT) is considering issuing one-month bonds occasionally to improve flexibility in responding to rapid liquidity changes.
The BoT on Thursday announced the bond issuance revision for the second half of this year, saying it was a response to "potential rapid changes in market liquidity conditions and large swings in appetite for bonds amidst heightened volatility in the global economy and financial markets".
Auction days and issuance frequencies for all types of BoT bonds will remain the same, but the BoT "will also consider issuing one-month BoT bills on an occasional basis, depending upon liquidity conditions".
The maximum issue sizes of all bills and fixed-coupon bonds are increased, while the minimum amounts remain unchanged.
For the 3-year floating-rate bond, the issue size per auction will be maintained within the same range, the central bank announcement said.
Auction schedule:
|
Type of Bond |
Auction Day |
Auction Frequencies |
|
1.Bill |
||
|
- Cash Management Bill (<15-day) |
Friday |
Occasionally |
|
- 1-month |
Tuesday |
Occasionally |
|
- 3- and 6-month |
Tuesday |
Every week |
|
- 1-year |
Tuesday |
Every month |
|
2. Fixed-coupon bond |
||
|
- 2-year |
Thursday |
Every even month |
|
- 3-year |
Thursday |
Every odd month |
|
3. Floating rate bond |
||
|
- 3-year |
Friday |
Every even month |
Issue sizes:
|
Type of Bond |
Issue Size per Auction (Million Baht) |
Outstanding per Issue (Million Baht) |
Number of Issue per Year |
|
1. Bill |
|||
|
- Cash Management Bill (<15-day) |
10,000 - 80,000 |
10,000 - 80,000 |
As appropriate |
|
- 1-month |
10,000 - 30,000 |
10,000 - 30,000 |
As appropriate |
|
- 3- and 6-month |
20,000 - 60,000 |
20,000 - 60,000 |
50 - 52 |
|
- 1-year |
20,000 - 60,000 |
60,000 -180,000 |
4 |
|
2. Fixed-coupon Bond |
|||
|
- 2- and 3-year |
15,000 - 50,000 |
45,000 - 150,000 |
2 |
|
3. Floating-rate Bond |
|||
|
- 3-year |
8,000 - 15,000 |
100,000 - 180,000 |
1 |