On Friday, July 5 investors in the Bank of Jamaica’s 28 days $37 billion CDs auction received an average interest rate of 9.91 percent with the highest successful rate at 10.249 percent, resulting in $141.5 billion being siphoned out of the financial market, with 299 successful bids out of a total 377 bids.
On July 12, Bank of Jamaica offered just $9 billion in CDs were offered, reducing the outstanding CDS to $139.5 billion, after attracting 278 bids covering $24.9 billion with just 74 successful bids from a high of 9.65 percent to a low of 8.50, with an average of 9.40 percent.
In the past week, Bank of Jamaica offered $36 billion and obtained 472 bids amounting to $52.68 billion with 392 succeeding with an average rate of 9.47 percent. The highest successful rate came out at 9.85 percent, the total amount of the 28 days CDS stood at $135 billion.
The average of the above rates is well below 11.90 percent on April 17 when the total amount of 28 days CDS was $155 billion.
The latest offering of $50 billion today is lower than the $53 billion that expires on Friday and is in line with BOJ’s commitment to ease liquidity within the financial market.
Falling interest rates
July 24, 2024 by
