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.
- Treasury Bills & Notes Issuance Calendar- November 2018 to June 2019 Nov 08, 2018
- 5 Year Treasury Note Auction-Held on 20 November 2018 Nov 08, 2018
- Bid Form- 5 Year Treasury Note Auction-Held on 20 November 2018 Nov 08, 2018
- Intent to Award Contract - Design, Supply, Install and Commission an E-Ticketing and Access Control System at the Silver Stadium Nov 02, 2018
- October 2018 Monthly Average Exchange Rates Nov 02, 2018
- Monetary Policy Report - September 2018 Oct 17, 2018
- Interest Rate Monthly Average Figures - Jan 1980 to Aug 2018 Oct 10, 2018