LankaBangla Securities recently participated in the inaugural primary auction of treasury bonds through beneficiary owner (BO) accounts, securing a yield of over 9% for institutional clients, totaling Tk1.1 crore. Yield represents the annual percentage return relative to the asset’s purchase cost. Initially limited to institutional clients, the primary Treasury auction services will expand after a successful trial.
The winning bidder is expected to receive their bond units in their BO account by Thursday. Besides primary auctions, LankaBangla Securities also leads in secondary market services for treasury trading in stock exchanges, offering government securities supply and serving other brokerage firms’ client requests for exchange-traded treasury instruments.
Successful Treasury auction bids require cautious investment as investors bid within a yield range. Striking a balance between ambition and prudence is crucial, as overly ambitious bids can lead to failed auctions, with the central bank striving to minimize interest payments on government borrowings through Treasury bonds. Treasury bonds became tradable on stock exchanges last year.
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