Treasury bill rates plummet

Interest rates on Government of Jamaica Treasury bills reached their lowest levels in decades with the latest round of treasury bills falling sharply as $9.1 billion dollars chased after the limited amount of $1.8 billion on offer in three tranches.
The 91 day bills cleared at an average of 3.35 percent, down from 3.99 in January, the 182 days instrument ended at 3.593 percent, a fall from 4.16 percent from the average rate in January and the 9 months bill closed at an average of 4 percent. The sharp fall comes against the background of zero inflation rate in January and with no planned tax increase ahead the next few months could continue to see very low inflation.
The decline has implications for a wide array of developments in the wider economy and should herald a general fall in interest rates across the board over the coming months. Rates look as if they will fall further to around 3 percent where they could settle for some time.