1. Financial System of Bangladesh:
Financial system is a Set of institutional arrangement through which financial surpluses will be mobilized from the surplus units and will be transferred to the deficit units. It is a framework for describing set of markets, organisations, and individuals that engage in the transaction of financial instruments (securities), as well as regulatory institutions.
The basic role of Financial System is essentially channelling of funds within the different units of the economy – from surplus units to deficit units for productive purposes. 1.1 COMPONENTS OF FINANCIAL SYSTEM:
There are mainly three components of financial system. These are: I. Financial Market II. Financial Intermediaries III. Financial Instrument

I. FINANCIAL MARKET
Financial markets are a mechanism enabling participants to deal in financial claims. The markets also provide a facility in which their demands and requirements interact to set a price for such claims. Financial markets perform the essential function of channeling funds from economic players that have saved surplus funds to those that have a shortage of funds. At any point in time in an economy, there are individuals or organizations with excess amounts of funds, and others with a lack of funds they need for example to consume or to invest.
Exchange between these two groups of agents is settled in financial markets. The first group is commonly referred to as lenders. The second group is commonly referred to as the borrowers of funds. * There exist two different forms of exchange in financial markets. The first one is direct finance, in which lenders and borrowers meet directly to exchange securities. * Securities are claims on the borrower’s future income or assets. Common examples are stock, bonds or foreign exchange * The second type of financial trade occurs with the help of financial intermediaries and is known as indirect finance. In this scenario borrowers and lenders never meet directly, but lenders provide funds to a financial intermediary such as a bank and those intermediaries independently pass these funds on to borrowers. STRUCTURE OF FINANCIAL MARKETS
Financial markets can be categorized as follows: * Debt vs Equity markets * Money vs Capital Markets * Primary vs Secondary markets * Exchange vs Over the Counter (OTC) * DEBT VS EQUITY MARKETS
Financial markets are split into debt and equity markets.
Debt market: Debt titles are the most commonly traded security. In these arrangements, the issuer of the title (borrower) earns some initial amount of money (such as the price of a bond) and the holder (lender) subsequently receives a fixed amount of payments over a specified period of time, known as the maturity of a debt title. * Debt titles can be issued on short term (maturity < 1 yr.), long term (maturity >10 yrs.) and intermediate terms (1 yr. < maturity < 10 yrs.). * The holder of a debt title does not achieve ownership of the borrower’s enterprise. * Common debt titles are bonds or mortgages.
Equity market: Equity titles are somewhat different from bonds. The most common equity title is (common) stock. * First and foremost, an equity instruments makes its buyer (lender) an owner of the borrower’s enterprise. * Formally this entitles the holder of an equity instrument to earn a share of the borrower’s enterprise’s income, but only some firms actually pay (more or less) periodic payments to their equity holders known as dividends. Often these titles, thus, are held primarily to be sold and resold. * Equity titles do not expire and their maturity is, thus, infinite. Hence they are considered long term securities. * MONEY VS CAPITAL MARKETS
Money market: It is a market which deals short-term instruments and securities, generally where temporary surpluses are transferred from surplus unit to temporary deficit unit.
Capital market: It is a market for long-term securities, i.e., securities having a maturity period of one year or more.

* PRIMARY MARKETS VS SECONDERY MARKETS
Primary market: Primary markets are markets in which financial instruments are newly issued by borrowers.
Secondary market: Secondary markets are markets in which financial instruments already in existence are traded among lenders. Secondary markets can be organized as exchanges, in which titles are traded in a central location, such as a stock exchange, or alternatively as over-the-counter markets in which titles are sold in several locations. * EXCHANGE VS OVER THE COUNTER (OTC) MARKETS
There are two components of the secondary market:
Exchange-traded market: In this market trading takes place over a trading cycle in stock exchanges. Recently, the derivatives market (exchange traded) has come into existence.

Over-the-counter (OTC) market: The government securities market is an OTC market. In an OTC market, spot trades are negotiated and traded for immediate delivery and payment

II. FINANCIAL INTERMEDIARIES: * Financial intermediaries are firms that collect the funds from lenders and channel those funds to borrowers (Mishkin) * Financial intermediaries are firms whose primary business is to provide customers with financial products and services that cannot be obtained more efficiently by transacting directly in securities markets (Z. Bodie &Merton)
TYPES OF FINANCIAL INTERMEDIARIES
There are roughly three classes of financial intermediaries:
Depository institutions accept deposits from savers and transform them into loans (Commercial banks, savings and loan associations, mutual savings banks and credit unions)
Contractual savings institutions acquire funds at periodic intervals on a contractual basis (insurance and pension funds)
Investment intermediaries serve different forms of finance. They include finance companies, mutual funds and money market mutual funds. III. FINANCIAL INSTRUMENT
A financial instrument is a claim against a person or an institution for payment, at a future date, of a sum of money and/or a periodic payment in the form of interest or dividend. The term ‘and/or’ implies that either of the payments will be sufficient but both of them may be promised. * Financial instruments represent paper wealth shares, debentures, like bonds and notes. * Many financial instruments are marketable as they are denominated in small amounts and traded in organized markets. * Different types of financial instruments can be designed to suit the risk and return preferences of different classes of investors.

CLASSIFICATION OF FINANCIAL INSTRUMENTS
Financial securities are financial instruments that are negotiable and tradable. Financial securities may be primary or secondary securities. * Primary securities: They are also termed as direct securities as they are directly issued by the ultimate borrowers of funds to the ultimate savers. Examples of primary or direct securities include equity shares and debentures. * Secondary securities: They are also referred to as indirect securities, as they are issued by the financial intermediaries to the ultimate savers. Bank deposits, mutual fund units, and insurance policies are secondary securities.

1.2 Global practice of financial system:

The global economy is growing more slowly than anticipated, and growth is projected to remain subdued at 2.9 percent in 2013. The growth in advanced economies is expected to pick up gradually following a weak 1.2 percent growth in 2013. In emerging market and developing economies, the growth rate is expected to slow to 4.5 percent in 2013. However, global activity is expected to strengthen moderately, but downside risks to global growth prospects still dominate the outlook.

IMF's latest World Economic Outlook Update (WEO Update October 2013) anticipated that average growth rate of world economy (2.9 percent) will be lower than the July 2013 WEO Update projections of 3.1 percent. The WEO forecast was revised downward mainly because of slower growth in China and in a growing number of emerging market economies, for both cyclical and structural reasons. Growth rate of the United States is projected to decline from 2.8 percent in 2012 to 1.6 percent in 2013. However, activity in the US is regaining pace, helped by a recovering real estate sector, higher household wealth, easier bank lending conditions, and more borrowing. In Japan growth is projected to pick up at 2.0 percent in 2013, the same as in 2012, in response to the Bank of Japan's Quantitative and Qualitative Monetary Easing and the government’s fiscal stimulus. In the euro area, economic growth is expected to contract by 0.4 percent in 2013, dampened by still tightening credit conditions in the periphery. In emerging market economies, the reasons for weaker growth may include tightening capacity constraints, stabilizing or falling commodity prices, less policy support, and slowing credit. The forecast for growth rate for China is reduced to 7.6 percent in 2013, which will affect commodity exporters among the emerging market and developing economies.

In advanced economies, consumer prices are anticipated to ease from 2.0 percent in 2012 to 1.4 percent in 2013. In the United States, the CPI inflation is projected to fall from 2.1 percent in 2012 to 1.4 percent in 2013. Moreover, in the euro area, inflation is projected to fall from 2.5 percent in 2012 to
1.5 percent in 2013. In emerging and developing economies, inflation is projected to increase slightly from 6.1 percent in 2012 to 6.2 percent in 2013. However, the projected growth rates of exports and imports for emerging market and developing economies are expected to decline to 3.5 and 5.0 percent in 2013 from 4.2 and 5.5 percent in 2012 respectively.

Commitments by the European Central Bank (ECB) to provide additional debt relief for Greece have greatly decreased redenomination risk. Moreover, initiatives by the ECB have reduced sovereign liquidity risk, which helped boost the resilience in economies of Italy and Cyprus. Overall, financial market conditions have improved and are benefiting the broader economy; however, the transmission is slow and incomplete.

1.3 Practice of financial system in Bangladesh:

Financial institutions:
There are different types of financial institutions working in Bangladesh. Their introduction, asset, investment, liability and deposit are described below: I. Central Bank:
Bangladesh Bank acts as the Central Bank of Bangladesh which was established on December 16, 1971 through the enactment of Bangladesh Bank Order 1972- President’s Order No. 127 of 1972 (Amended in 2003).
The general superintendence and direction of the affairs and business of BB have been entrusted to a 9 members' Board of Directors which is headed by the Governor who is the Chief Executive Officer of this institution as well. BB has 40 departments and 9 branch offices.
In Strategic Plan (2010-2014), the vision of BB has been stated as, “To develop continually as a forward looking central bank with competent and committed professionals of high ethical standards, conducting monetary management and financial sector supervision to maintain price stability and financial system robustness, supporting rapid broad based inclusive economic growth, employment generation and poverty eradication in Bangladesh”.
The main functions of BB are (Section 7A of BB Order, 1972) - 1. To formulate and implement monetary policy; 2. To formulate and implement intervention policies in the foreign exchange market; 3. To give advice to the Government on the interaction of monetary policy with fiscal and exchange rate policy, on the impact of various policy measures on the economy and to propose legislative measures it considers necessary or appropriate to attain its objectives and perform its functions; 4. To hold and manage the official foreign reserves of Bangladesh; 5. To promote, regulate and ensure a secure and efficient payment system, including the issue of bank notes; 6. To regulate and supervise banking companies and financial institutions. II. Banking sector:
The banking sector of Bangladesh comprises four categories of scheduled banks. These are
1. State-owned Commercial Banks (SCBs),
2. State-owned Development Financial Institutions (DFIs),
3. Private Commercial Banks (PCBs)
4. Foreign Commercial Banks (FCBs).
The number of banks remained unchanged at 47 in 2012. The number of bank branches increased from 7658 in 2010 to 7961 in 2011. These banks increased to a total number of 8322 branches as of December 2012. At the end of June 2013, the total number of banks and their branches increased to 55 and 8427 respectively due to opening of new PCBs and bank branches during the year. * Assets and deposits:
The structure of the banking sector, with a breakdown by type of banks and comparison between two years are given below-

* Liability and capital:
During 2009: The aggregate liability portfolio of the banking industry in 2009 was Taka 3965.8 billion of which deposits constituted Taka 3037.6 billion (76.6 percent) continued to be the main sources of fund of banking industry.
Capital and reserves of the banks were Taka 282.2 billion (7.1 percent) in 2009, as against Taka 205.8 billion (6.2 percent) in 2008.
During 2010-11: The aggregate liability portfolio (including equities) of the banking industry in 2010 was Taka 4855.1 billion of which deposits constituted Taka 3721.9 billion (76.7 percent). Deposits continued to be the main sources of fund of the banking industry.
Capital and reserves of the banks were Taka 418.8 billion (8.6 percent) in 2010, as against Taka 282.2 billion (7.1 percent) in 2009. Capital and reserves of the banks increased further and stood at Taka 461.2 billion at end June 2011.
During 2011-12: The aggregate liability portfolio (including equities) of the banking industry in 2011 was Taka 5867.6 billion of which deposits constituted 76.9 percent (Taka 4509.7 billion) and was the main sources of funds of the banking industry.
Capital and reserves of the banks were Taka 536.0 billion (9.1 percent) in 2011, as against Taka 418.8 billion (8.6 percent) in 2010 (Chart 5.2). It is worth mentioning here that capital and reserves of the banks stood at Taka 562.0 billion at end June 2012.
During 2012-13: Deposits continued to be the main sources of funds of the banking industry and constituted 76.8 percent (Taka 5396.0 billion) of its aggregate liability and capital portfolio in 2012.
Capital and reserves of the banks were Taka 544.3 billion (7.7 percent) in 2012, as against Taka 536.0 billion (9.1 percent) in 2011 (Chart 5.2). It is worth mentioning here that capital and reserves of the banks stood at Taka 498.6 billion at end June 2013.

III. Non banking sector:
Non-bank Financial Institutions (NBFIs) in Bangladesh have been playing a significant role in the financial system of the country. This sector has emerged as an increasingly important segment of the financial system because of the rapidly rising demand for long term financing and equity type services. NBFIs added differentiation to the bank based financial market of Bangladesh. The inevitability of the NBFIs has created a new phase to strengthen the financial system of the country in parallel with the saturated banking industry. NBFIs in Bangladesh play major role in filling gaps in financial intermediation by providing diversified investment instruments and risk pooling services. NBFIs have achieved impressive growth in recent years reflecting the importance of financial innovation and holding the promise of deepening financial intermediation through satisfying long term financing needs. The assets, liabilities, investment and deposit performance are shown below: * Assets:
During 2009-10: The asset base increased substantially in 2010. Aggregate industry assets stood at Taka 251.5 billion in 2010 from Taka 193.8 billion in 2009, showing a growth of 29.8 percent.
During 2011-12: The asset base of the NBFIs increased substantially in 2011 and 2012. Aggregate industry assets increased to Taka 288.4 billion in 2011, showing a growth of 14.7 percent. The growth rate for 2012 will probably be higher than that of 2011.
During 2012-13: The asset base increased substantially in Financial Year 13. Aggregate industry assets stood at Taka 333.9 billion in 2012 from Taka 288.4 billion in 2011, showing a higher growth of 15.8 percent compared to the previous year. At the end of June 2013, assets stood at Taka 378.5 billion.

* Investment:
During 2009-10:
NBFIs are investing in different sectors of the economy, but their Investments are mostly concentrated in industrial sector. Total investment of NBFIs in different sectors, up to 30 June 2010 was, Taka 163.5 billion. Investment in capital market was Taka 15.4 billion. During 2011-12: During 2012-13:
As compared with December 2012, investment in industry increased by 6.2 percentage points due to a significant rise in investment in power, gas, water and sanitary services. Other investments showed little changes, except housing which decreased by 2.6 percentage points at the end of June 2013.

* Deposits:
During 2009-10:
Total deposits of the NBFIs in 2010 rose to Taka 94.4 billion (45.7 percent of total liabilities) from Taka 80.8 billion (49.2 percent of total liabilities) in 2009 showing an overall increase by 16.8 percent. On 30 June 2011, total deposit stood at Taka 106.3 billion (48.0 percent of total liabilities).
During 2011-12:
Total deposits of the NBFIs in 2011 rose to Taka 112.6 billion (47.8 percent of total liabilities) from Taka 94.4 billion (45.7 percent of total liabilities) in 2010 showing an overall increase of 19.3 percent. On 30 June 2012 total deposit stood at Taka 124.2 billion (49.2 percent of total liabilities)
During 2012-13:
Total deposits of the NBFIs in 2012 rose to Taka 145.4 billion (53.0 percent of total liabilities) from Taka 112.6 billion (47.8 percent of total liabilities) in 2011, an overall increase of 29.1 percent. Total deposits further increased to Taka 174.0 billion at the end of June 2013.

IV. Insurance Companies:
The insurance sector is regulated by the Insurance Act, 1938 with regulatory oversight provided by the Controller of Insurance on authority under the Ministry of Commerce. A separate Insurance Regulatory Authority is being established. A total of 62 insurance companies have been operating in Bangladesh, of which 18 are Life Insurance Companies including 1 foreign company and 1 is state-owned company, and 44 General Insurance Companies including 1 state-owned company. Among the life insurance companies, except the state-owned Jiban Bima Corporation (GBC) foreign owned American Life Insurance Company (ALlCO), and the rest of the private. Among the general insurance companies, state-owned Shadharan Bima Corporation (SBC) is the most active in the insurance sector. A total of 31 insurance companies are listed in the capital market, of which 8 offer life insurance.

V. Micro-Finance Institutions:
The member-based Microfinance Institutions (MFIs) constitute a rapidly growing segment of the Rural Financial Market (RFM) in Bangladesh. Microcredit programs (MCP) in Bangladesh are implemented by various formal financial institutions (nationalized commercial banks and specialized banks), specialized government organizations and Non-Government Organizations (NGOs). The growth in the MFI sector, in terms of the number of MFI as well as total membership, was phenomenal during the 1990s and continues till today.

Despite the fact that more than a thousand of institutions are operating microcredit programs, but only 10 large Microcredit Institutions (MFIs) and Grameen Bank represent 87% of total savings of the sector and 81% of total outstanding loan of the sector. Through the financial services of microcredit, the poor people are engaging themselves in various income generating activities and around 30 million poor people are directly benefited from microcredit programs.
Credit services of this sector can be categorized into six broad groups:
i) general microcredit for small-scale self employment based activities, ii) Microenterprise loans, iii) Loans for ultra poor, iv) Agricultural loans,
v) Seasonal loans, vi) Loans for disaster management. Currently, 599 institutions (as of October 10 2011) have been licensed by MRA to operate Micro Credit Programs. But, Grameen Bank is out of the jurisdiction of MRA as it is operated under a distinct legislation- Grameen Bank Ordinance, 1983.

2. Financial Market Instruments:
Are real or virtual documents representing a legal agreement involving some sort of monetary value. In today's financial marketplace, financial instruments can be classified generally as equity based, representing ownership of the asset, or debt based, representing a loan made by an investor to the owner of the asset. Foreign exchange instruments comprise a third, unique type of instrument. Different subcategories of each instrument type exist, such as preferred share equity and common share equity, for example.
Financial instruments can be thought of as easily tradable packages of capital, each having their own unique characteristics and structure. The wide array of financial instruments in today's marketplace allows for the efficient flow of capital amongst the world's investors.
2.1 Global perspective on Financial market Instruments
Money market is a network of banks, discount houses, institutional investors, and money dealers who borrow and lend among themselves for the short-term (typically 90 days). Money markets also trade in highly liquid financial instruments with maturities less than 90 days to one year (such as bankers' acceptance, certificates of deposit, and commercial paper, and government securities with maturities less than three years (such as treasury bills, foreign exchange, and bullion. Unlike organized markets such as stock exchanges money markets are largely unregulated and informal where most transactions are conducted over phone, fax, or online. Long-term borrowing and lending markets are called capital markets. The money market is e short term debt market that deals with different money market instruments.

Market for Short-Term Debt Instruments- negotiable certificates of deposit, Eurodollar certificates of deposit, commercial paper, bankers’ acceptances, Treasury bills, and discount notes of the Federal Home Loan Bank, Federal National Mortgage Association, and Federal Farm Credit System, among others. Federal funds borrowings between banks, bank borrowings from the Federal Reserve Bank Window, and various forms of repurchase agreements are also elements of the money market. What these instruments have in common are safety and Liquidity. The money market operates through dealers, Money Center Banks, and the Open Market Trading Desk at the New York Federal Reserve Bank. New York City is the leading money market, followed by London and Tokyo. The dealers in the important money markets are in constant communication with each other and with major borrowers and investors to take advantage of Arbitrage opportunities, a practice which helps keep prices uniform worldwide.

3.2 Market instruments available in Bangladesh:
The financial market instruments that and available in context of Bangladesh along with their interest rate for the previous 5 years are given below: I. MONEY MARKET * CALL MONEY MARKET * For the year 2013, the weighted average interest rate in the call money market ranged from 7.2 percent to 11.5 percent * For the year 2012, the weighted average interest rate in the call money market ranged from 9.8 percent to 19.7 percent. * For the year 2011, the weighted average interest rate in the call money market moved within the range of 3.3 percent to 33.5 percent. * For the year 2010, the weighted average interest rate in the call money market was within the range of 0.74 percent to 6.62 percent. * For the year 2009, the weighted average interest rate in the call money market moved within range of 1.7 percent to 10.3 percent.

* REPO AUCTIONS * For the year 2013, the range of interest rate against the accepted bids was 7.25-10.75 percent per annum. * For the year 2012, the range of interest rate against the accepted bids was 6.75-10.80 percent per annum. * For the year 2011, the range of interest rate against the accepted bids was 4.5-8.8 percent per annum. * For the year 2010, the range of interest rate against the accepted bids was 4.50-8.50 percent per annum. * For the year 2009, the interest rate against the accepted bids was 8.5-8.8 percent per annum.

* REVERSE REPO AUCTIONS * For the year 2013, the interest rate range against the accepted bids was 5.25-5.75 percent per annum. * For the year 2012, the interest rate range against the accepted bids was 4.75-5.75 percent per annum. * For the year 2011, the interest rate range against the accepted bids was 2.5-3.5 percent per annum. * For the year 2010, the rate of interest against the accepted bids was 2.50 percent per annum. * For the year 2009, the interest rate against the accepted bids was 6.5-6.8 percent per annum. * BANGLADESH BANK BILL * In the year 2013, the weighted average yield-to- maturity against the accepted bids ranged from 7.10 percent to 9.41 percent. * In the year 2012, Bangladesh Bank prudently decided not to apply this instrument during the period under report. * In the year 2011, yield-to-maturity against the accepted bids ranged from 2.5 percent to 3.5 percent. * In the year 2010, the weighted average yield-to- maturity against the accepted bids ranged from 0.93 percent to 2.55 percent. * In the year 2009, it is mentionable that no auction was held.

* GOVERNMENT TREASURY BILLS AUCTION * During the year 2013, the weighted average yield-to-maturity against the accepted bids ranged from 8.13 percent to 11.54 percent. * During the year 2012, the weighted average yield-to-maturity against the accepted bids ranged from 7.01 percent to 11.43 percent. * During the year 2011, the weighted average yield-to-maturity against the accepted bids ranged from 2.43 percent to 7.55 percent. * During the year 2010, the weighted average yield-to-maturity against the accepted bids ranged from 1.11 percent to 5.42 percent. * During the year 2009, the weighted average yield-to-maturity against the accepted bids ranged from 3.02 percent to 8.6 percent.

* BANGLADESH GOVERNMENT TREASURY BONDS (BGTBS) AUCTIONS * For year 2013, the coupon rate for the treasury bonds ranged from 10.98 percent to 12.48 percent. * For year 2012, the coupon rate for the treasury bonds ranged from 8.26 percent to 12.12 percent. * For year 2011, the coupon rate for the treasury bonds ranged from 7.88 percent to 9.65 percent * For year 2010, the weighted average yield-to-maturity for the treasury bonds ranged from 7.47 percent to 9.41 percent in FY10 * For year 2009, the coupon rate for the treasury Bonds ranged from 9.20 percent to 13.07 percent

* Bangladesh Government Islamic Investment Bond (Islamic Bond) * In the year 2013, the total sale against this bond amounted to Taka 107.13 billion while balance of total amount of financing stood at Taka 67.78 billion and the net outstanding against the bond stood at Taka 39.35 billion. * In the year 2012, the total sale against this bond amounted to Taka 31.48 billion while balance of total amount of financing stood at Taka 31.26 billion and the net outstanding against the bond stood at Taka 0.22 billion. * In the year 2011, the total sale against this bond amounted to Taka 25.3 billion while balance of total amount of financing stood at Taka 22.8 billion and the net outstanding against the bond stood at Taka 2.5 billion. * In the year 2010, the total sale against this bond amounted to 23.4 Taka billion while balance of total amount of financing stood at Taka 15.4 billion and the net outstanding against the bond stood at Taka 8 billion. * In the year 2009, the total sale against this bond amounted 16.4to Taka billion while balance of total amount of financing stood at Taka 12.1 billion and the net outstanding against the bond stood at Taka 4.3 billion.

II. Capital Market:

* Primary Issuance: * In the year 2013, fourteen companies raised new equity of Taka 12.2 billion in the capital market in FY13. * Fifteen companies raised new equity of Taka 16.4 billion in the capital market in FY12. * Nineteen companies raised new equity of Taka 27.9 billion in the capital market in FY11. * Twenty three companies (including three direct listing companies) raised new equity of Taka 18.2 billion in the capital market in FY10. * Seventeen companies raised new equity of Taka 5.9 billion in the capital market in FY09.

* Secondary Market Activities: * As a percent of market capitalization the financial sector dominated with 37.2 percent share, followed by services and miscellaneous (33.7 percent), manufacturing (28.8 percent) and corporate bonds (0.3 percent) at the end of June FY13. * In market capitalization excluding treasury bonds and debentures, the financial sector dominated with 43.8 percent share, followed by services and miscellaneous (31.6 percent), manufacturing (24.3 percent) and corporate bonds (0.3 percent) at the end of June FY12. * In market capitalization excluding treasury bonds and debentures, the financial sector dominated with 49.2 percent share, followed by services and miscellaneous (26.2 percent), manufacturing (24.3 percent) and corporate bonds (0.3 percent) at end June FY11. * In market capitalization excluding treasury bonds, the financial sector dominated with 46.6 percent share, followed by services and miscellaneous (32.2 percent), manufacturing (21.1 percent), and corporate bonds (0.2 percent) at the end of June FY10. * In market capitalization excluding treasury bonds, the financial sector dominated with 48.2 percent share, followed by manufacturing (27.2 percent), services and miscellaneous (24.3percent) and corporate bonds (.0.3 percent) at the end of June FY09.