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.
- Prospectus of 3-year Treasury Note 07 April 2020 Apr 06, 2020
- Statement of the Monetary Policy Committee - 1st April 2020 Apr 02, 2020
- RBM Annual Financial Statements for the Year End 31 December 2019 Apr 02, 2020
- SUMMARY OF REVERSE AUCTION RESULTS 30 MARCH 2020 Mar 30, 2020
- Adverts - Various Positions 2020 Mar 27, 2020
- REPURCHASE OF GOVERNMENT SECURITIES THROUGH REVERSE AUCTION ISINs TN05YR240920, TN05YS240920 AND TN02YR040920 30 MARCH 2020 Mar 25, 2020
- Results of 7 Year Treasury Note Auction Held on 24 march 2020 Mar 24, 2020