BOT to reduce bond issue sizes
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Bank of Thailand will reduce the issue size of its bonds next year, signalling its expectation of lower capital inflows.
The issue size of its bills, with maturity of 1 year, would be reduced from Bt75-Bt135 billion to Bt25-Bt45 billion.
Meanwhile, the issue size of fixed coupon bonds
will be reduced from Bt60-Bt120 billion to Bt20-Bt40 billion.
The issue size of floating-rate bonds will also be reduced from Bt48-Bt90 billion to Bt8-Bt15 billion.
"In 2015, the BOT will reduce the issue size per auction of CMB (cash-management bills) while maintaining those of other maturities, in accordance with liquidity conditions outlook and the government’s funding plans. Overall, the large part of BOT bonds issued in 2015 will primarily match the maturing ones," the central bank said in a statement.
The central bank said it would also consider the prevailing money and bond markets conditions when determining the issue size and maturity distribution of the bonds. It will also closely coordinate with the Public Debt Management Office to take into account the forthcoming supply of government bonds and treasury bills.
