Interest rates plunged on the latest Bank of Jamaica Certificate of deposit offer of $7 billion to the public. 
The auction attracted 295 bids amounting to $32.6 billion but only 39 bids were successful sending the average rate to down to 7.03 percent, just above the Banks’ Overnight rate of 6.75 percent.
The highest successful bid was 7.14 percent. At last week’s auction the average rate clear at 7.61 percent. Rates are down from a peak of nearly 12 percent in march this year.
The central bank continues to hold the stock of short term CDs at $120 billion.
BOJ CD rates at now at 7%
September 4, 2024 by
BOJ CD rates drop below 9%
August 14, 2024 by
Rates dropped on the latest Bank of Jamaica Certificate of Deposit offer of $33 billion, resulting in an average yield for successfully allocated bids of 8.84 percent, down from 9 percent last week.
The country’s central bank received 454 bids amounting to $65.9 billion of which 224 were successful.
The auction, will result in $121 billion in outstanding short term CDs, down from $124 billion last week. In late March the total short term CD was just under $160 billion. The reduction in the amounts taken from the market represents a meaningful increased in liquidity when interest that was paid on the CDs is factored in.
BOJ CD rates inched higher
June 5, 2024 by
Rates on Bank of Jamaica certificate of deposits (CDs) closed higher to end at an average of 10.02 percent in Wednesday’s public auction of $37 billion.
The highest rate cleared at 10.325 percent which was only partially filled with 334 successful bids out of a total of 373 covering $444.283 billion that the central bank received for the auction.
Today’s average rate was slightly above the 9.98 percent in last week’s auction. This week’s auction will result in the total amount of 30 days CD’s that the Bank of Jamaica holds falling to $125.5 billion from $128.5 billion in the previous week.
BOJ CD rates fall below 10%
May 30, 2024 by
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The Bank of Jamaica’s latest offering of $47 billion to the public in certificates of deposit (CD), resulted in a fall in rates with an average of 9.98 percent at the auction that attracted $60.6 billion in 445 bids of which 358 were successful with the highest rate peaking at 10.35 percent.
This week’s rate is 16 percent lower than the peak on April 5, this year, with the average rate then of 11.59 percent.
The average rate of today’s auction is the lowest in months and is lower than last week’s average of 10.19 percent following an auction of $34.5 billion which cleared at an average of 10.19 percent. The total amount of 30 days CD outstanding is $128.5 billion.
Investors should pay attention to developments in this section of the financial market to get an early reading as to the trend in interest rates and not on Bank of Jamaica overnight rate.
