The Central Bank of Myanmar (CBM) will auction treasury bonds to finance the budget deficit on 21 January, 18 February and 17 March 2020

The Central Bank of Myanmar will auction treasury bonds to finance the budget deficit on January 21, February 18 and March 17.

U Maung Maung Win, Deputy Minister of Planning, Finance and Industry, told the Upper House of Parliament in August 2019 that the government would fund the budget deficit through government bonds and treasury bills.

According to the government’s fiscal policy statement, 50 percent of the deficit will be covered by the sales of treasury bills, 21 percent by treasury bond sales and 29 percent by foreign borrowing.

Local banks, foreign bank branches, securities underwriter firms and insurance firms are eligible to bid for the two- three- and five-year treasury bonds.

The two-year bond pays 8.5 percent while the three-year pays 9 percent and the five-year, 9.5 percent.

Interest payment is made twice a year, in May and November. Bond prices are K10,000, K 100,000, K 1 million and K10 million.

In international markets, investment companies are interested in treasury bonds, which are very low risk and offer better returns than bank deposits.

(Myanmar Business Today: https://mmbiztoday.com/central-bank-to-auction-treasury-bonds/ )

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