Note auction in Thailand is a step toward establishing rate benchmarks

The Bank of Thailand has decided to sell about $403.7 million worth of government bonds to serve as a benchmark for the domestic short-term bond market. The bank auctioned off one-month, three-month, and six-month notes on Aug. 4, 1995. Investment advisers noted, however, that the issuance of the bonds will not immediately result in a benchmark and that the Bank of Thailand needs to issue more bonds with different maturation periods to expedite the establishment of benchmarks.