The lastest issue of Treasury bills saw a slight slippage in the rates investors will be getting from the government over the next three to six months.
The 6 months issue of Treasury bills maturing in November this year attracted $656.586 million and yielding an average of 6.714 percent, compared with 6.787 percent in April. The the 3 months’ bills are yeilding 6.568 percent versus 6.61 percent in April, the latter auction attracted bids of $655,977,500. Both issues offered bills of $400 million each.
Rates have been sliding on Treasury bills since March last year, there was a slight uptick in the rate out turn at the February auction. The pace of decline of the rates seems to have slowed, in this auction compared with earlier declines. Bank of Jamaica will probably have to lower CD rates to induce a faster decline with inflation for the year still subdued.
Interest rates slip slightly
May 20, 2015 by
[…] budgeted. The fall in the interest cost on the local debt would have occurred as a result of Treasury bill rates having fallen at the time the budget was crafted and April, with government having variable rate […]