Bank of Thailand moves some bond auctions to Thursdays, cuts issues

By Susanna Moon

Chicago, Jan. 4 - Bank of Thailand said it will now hold auctions of two-year and three-year fixed-coupon bonds on Thursday instead of Tuesday in a move aimed at keeping the bonds from maturing on Saturday or Sunday.

The change will remove the yield distortion and improve liquidity in the secondary market, according to a bank press release.

The auction days for the other types and maturities of bonds will remain unchanged.

This year, the bank also will reduce the number of bond issues while boosting the amount outstanding per issue, also meant to enhance the liquidity of the bonds in the secondary market.

The bank will expand the issue size per auction of the bonds with maturities ranging from one year and on at first and reopen the same issues a few times so that the outstanding amount per issue is built up to around 80 billion Thai baht or more, the release noted.

The bank said it will consider the prevailing money and bond market conditions when setting the issue size and maturity distribution of the bonds. The bank also coordinates with the country's Public Debt Management Office to consider the supply of government bonds.

The monthly bond auction calendar will be announced on the bank's website.

The bank said it has continually issued bonds as one form of monetary policy to ensure that money market liquidity is at an appropriate level "while fostering the development of a liquid and efficient debt securities market in Thailand."

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