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Investors ready for lower interest rates
There are greater indications that the market is ready for lower rates of interest rates.
The indications came in the last Treasury Bill auction.
Treasury Bill auctions are typically methods by which investors indicate the level of interest rates they are willing to accept for their money when they lend it to the government.
The most closely watched auction, that of 182 day treasury from which benchmark interest rates are set in the economy showed investors are willing to accept as low as 8.98% on their money.
The rate is a 28 year low.
Investors were willing to lend up to three times the $400 million the government was seeking to borrow for six months, and the fact that they are willing to accept interest rates below 9% shows the appetite for high interest rates have waned.
The lesser watched, but equally important 91 day Treasury Bill also came in lower with an indicative rate of 8.52%.
It was oversubscribed by more than seven times.
There are greater indications that the market is ready for lower rates of interest rates.
The indications came in the last Treasury Bill auction.
Treasury Bill auctions are typically methods by which investors indicate the level of interest rates they are willing to accept for their money when they lend it to the government.
The most closely watched auction, that of 182 day treasury from which benchmark interest rates are set in the economy showed investors are willing to accept as low as 8.98% on their money.
The rate is a 28 year low.
Investors were willing to lend up to three times the $400 million the government was seeking to borrow for six months, and the fact that they are willing to accept interest rates below 9% shows the appetite for high interest rates have waned.
The lesser watched, but equally important 91 day Treasury Bill also came in lower with an indicative rate of 8.52%.
It was oversubscribed by more than seven times.
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