More transparent Treasury Bond auctions
The Monetary Board last week recommended several measures to ensure
more transparency in Treasury bond auctions.
The Central Bank said in a statement it recommends the bond
management team to hold pre-bid meetings with all the Primary Dealers to
share information on market developments and to have a clearly defined
auction calendar and to examine the international best practices with
respect to volumes advertised and accepted at public auctions and
propose to the Board as to how the Central Bank should adopt such
practices. The CB also recommended the Employees Provident Fund to
actively participate at the Primary Auctions.
This announcement came after the articles and discussions relating to
the Treasury Bond auctions that took place during the latter part of
March 2016, where allegations of lack of transparency were made with
regard to the process that was followed.
“The attention of the public is drawn to the fact that the process
followed was similar to what has been in practice since February last
year when a complete market based mechanism was introduced in auctioning
of Treasury bills and bonds,” the statement said.
“The Monetary Board noted the large resource needs of the Government.