A yield curve is a relationship between the interest rate and the time to maturity of the debt instrument denominated in a given currency. For the issuer, an interest rate is the cost of borrowing while for the investor; the rate represents a measure of return from investment.
The Malawi Government securities yield curve is derived from the relation between interest rates of Treasury bills and indicative bond yields and the time to maturities of bonds of different tenors. The interest rates of treassury bills are the prevailing weighted average rates for both 91-day and 182-day and 364-day ppaers while the interest rates for Treasury bonds are the average indicative yields for bonds based o years to maturity. Thus, our estimation of the yield curve entails use of only a few known yields for certain maturities while yields for other maturities are estimated by interpolation.
For the investor, a yield curve is useful for understanding conditions in the financial markets with an aim to seeking trading opportunites, measuring expected returns on bonds and inflation expectations. For issuers, the yield curve acts as a benchmark for pricing other financial instruments in the market as well as predicting the yield/prices of future government issuances.
- Invitation to Bid - Development and Implementation of Cross-Border Foreign Exchange Reporting System (International Competitive Bidding) Jun 22, 2017
- May 2017 NPS Monthly Report Jun 20, 2017
- Monetary Policy Statement - June 2017 Jun 19, 2017
- REPORT AND ACCOUNTS FOR THE YEAR ENDED 31ST DECEMBER 2016 Jun 06, 2017
- Invitation To Bid (ITB) - Supply and Delivery of Indoor Range Professional Simulator Jun 06, 2017
- Exchange Rates - Monthly Average Jun 02, 2017
- Financial and Economic Review for Fourth Quarter 2016 May 29, 2017