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.
- June 2017 Monthly Economic Review Aug 16, 2017
- Speech by the Governor of the Reserve Bank of Malawi, Dalitso Kabambe, PhD at the Inaugural Financial Inclusion Indaba and Launch of the National Strategy for Financial Inclusion Jul 27, 2017
- Statement by Dalitso Kabambe, PhD Governor of the Reserve Bank of Malawi at the Malawi Stock Exchange Symposium at Sunbird Mount Soche Hotel Blantyre on 26 July, 2017 Jul 26, 2017
- June 2017 NPS Monthly Report 2 Jul 17, 2017
- May 2017 Monthly Economic Review Jul 13, 2017
- Speech by the Governor of the Reserve Bank of Malawi, Dalitso Kabambe, PhD on the Official Launch of the RBM Tip-Offs Anonymous Scheme on 11 July 2017 Jul 12, 2017
- Minutes of the 2nd Monetary Policy Committee Meeting for 2017 Jul 05, 2017