Treasury Bond Auction held on 16 April 2015 - Amount Accepted - Nil
http://www.cbsl.gov.lk/pics_n_docs/latest_news/t%20bond%20press%20release%2016.04.2015%20-%20revised.pdf
- sereneTop contributor
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Join date : 2014-02-26
Re: Treasury Bond Auction held on 16 April 2015 - Amount Accepted - Nil
Seems government want to prove something.
Over to RPPa and bond experts. :
- RPPATop contributor
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Join date : 2014-11-28
Re: Treasury Bond Auction held on 16 April 2015 - Amount Accepted - Nil
serene wrote:Thanks mate.
Seems government want to prove something.
Over to RPPa and bond experts. :
Yes. CBSL expected the market to quote prices at much lower rates after the policy rate cut.
By not accepting any of the bids CBSL given a signal to the Primary dealers should have equated much lower rates.
But on the other side market understands than the CBSL only pump the rates up by 30Yr Bond drama & by silly policy decisions not the market. So it will take time to get the confidence of the financial market back to the system with regard to Government Debt.
- sereneTop contributor
- Posts : 4850
Join date : 2014-02-26
Re: Treasury Bond Auction held on 16 April 2015 - Amount Accepted - Nil
RPPA wrote:serene wrote:Thanks mate.
Seems government want to prove something.
Over to RPPa and bond experts. :
Yes. CBSL expected the market to quote prices at much lower rates after the policy rate cut.
By not accepting any of the bids CBSL given a signal to the Primary dealers should have equated much lower rates.
But on the other side market understands than the CBSL only pump the rates up by 30Yr Bond drama & by silly policy decisions not the market. So it will take time to get the confidence of the financial market back to the system with regard to Government Debt.
Thanks mate.
Heard that Mahendran is questioned by the bribery commission will it suffice to conclude that government not involved in the fiasco.
And the million dollar question is can the bond under the scrutiny be cancelled now, if proven guilty.
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Join date : 2014-11-28
Re: Treasury Bond Auction held on 16 April 2015 - Amount Accepted - Nil
serene wrote:
Thanks mate.
Heard that Mahendran is questioned by the bribery commission will it suffice to conclude that government not involved in the fiasco.
And the million dollar question is can the bond under the scrutiny be cancelled now, if proven guilty.
Such cancellation of accepted bond auction may not be possible now & it is not practical too. Because those are tradable securities & already secondary market transactions have taken place.And those can't be cancelled. Specially when complicated calculations are involved with regard to valuing of T/Bonds & interest accruals.
- sereneTop contributor
- Posts : 4850
Join date : 2014-02-26
Re: Treasury Bond Auction held on 16 April 2015 - Amount Accepted - Nil
RPPA wrote:serene wrote:
Thanks mate.
Heard that Mahendran is questioned by the bribery commission will it suffice to conclude that government not involved in the fiasco.
And the million dollar question is can the bond under the scrutiny be cancelled now, if proven guilty.
Such cancellation of accepted bond auction may not be possible now & it is not practical too. Because those are tradable securities & already secondary market transactions have taken place.And those can't be cancelled. Specially when complicated calculations are involved with regard to valuing of T/Bonds & interest accruals.
Ok. THANKS.