Increase in interest rates on one- and two-year maturities

Increase in interest rates on one- and two-year maturities

The yield curve of government bonds was published on January 1, 2017 + chart

According to Eqtesadnews, today the transactions of the government debt securities market decreased by 8% to 127 billion Tomans.


See the latest economic news and analysis on Eqtesadnews Instagram


Return rates increased at different maturities. The rate of one-year and two-year bond yields increased by 4 tenths and one tenth of a percent to 18.96 and 20.22 percent, respectively. The three-year bond yield fell 21 percent to 21.3 percent.

In the same context

Today, the yield curve had a steep slope, and while the yield on bonds with a maturity of 400 days was about 19.5 percent, this figure rose to 22 percent at a maturity of 600 days and to about 23 percent at 800 days.

Cash and future rate of return

In the government bond market, bond yields are discovered at different maturities through supply and demand. The rate discovered under this mechanism represents the average cash return on holding the bonds to maturity. Also, the difference in cash return rates at different maturities can be used to derive the future return expected by investors.

Curve


See the latest economic news and analysis on Eqtesadnews Instagram


This article is useful for me



0

N
Like this post

.Source