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.
- March 2018 NPS Monthly Report Apr 20, 2018
- 2017 RBM Annual Financial Statements Apr 20, 2018
- Government Financial Statistics Apr 19, 2018
- INVITATION TO BID (ITB) - TENDER FOR THE SUPPLY AND INSTALLATION OF CHANGE OVER SWITCHES AND RE-CONFIGURATION OF ELECTRICAL CIRCUITS AT BLANTYRE BRANCH. Apr 16, 2018
- PROCUREMENT OF A GYM / AEROBICS TRAINER Apr 16, 2018
- ENGAGEMENT OF A CONSULTANT FOR THE ASSESSMENT OF THE BOARD OF DIRECTORS Apr 16, 2018
- EXPRESSION OF INTEREST - STRUCTURAL CONDITION ASSESSMENT OF OFFICE BUILDING AT RESERVE BANK OF MALAWI - BLANTYRE BRANCH Apr 16, 2018