Bangladesh Bank has instructed commercial banks to use secondary market yields when revaluing Treasury bonds in the held-for-trading (HFT) category, as per a circular from the Debt Management Department. Previously, banks relied on primary market yields for revaluation. This move aligns with international practices and is expected to benefit financial institutions. Secondary market rates better reflect market conditions compared to regulated primary market rates. A senior central bank official noted that using primary market rates for revaluation led to inaccuracies due to infrequent bond auctions. The circular, however, maintains the use of primary market rates for Treasury bills revaluation.
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