Bond Market is a place or incidence of transaction in which any kind of bonds changes hands. Before independence, the use of bonds as a means of resource mobilisation was virtually non-existent in Bangladesh. Immediately after liberation, the government of Bangladesh reissued long-term bonds accepting the liabilities of the Income Tax Bonds and the Defense Bonds of the Pakistan government held by Bangladeshi nationals and institutions. The government also issued a 5% non-negotiable bond to Bangladeshi shareholders of nationalised industries. In addition, savings bonds were also issued to pay for the value of demonetised 100-taka notes in 1974. Most of these bonds are held by bangladesh bank.
The
first effort to mobilise savings for use of development expenditure was the
issue of Wage Earners Development Bonds in 1981 to be sold to Bangladeshi wage
earners abroad. Later, a two-year special treasury bond was issued in January
1984 to be sold to individuals, public and private sector organisations including
banks. In December 1985, another instrument, The government also issued some
bonds for augmenting loanable funds for speacialised banks and financial
institutions. Moreover, some bonds were also issued to mobilise funds for a
number of public sector organisations like the T&T Board, Bangladesh Biman
etc.