Aug 2016 Financial News

BOJ says market responsive to better rates on longer-term USD CDs

Aug 31, 2016

The Bank of Jamaica (BOJ) has issued a new offer of US-dollar (USD) certificates of deposit ranging in tenor from three years to seven years.

Meanwhile, the bank notes that the three-year instrument issued in the June quarter at a marginally higher coupon of 2.40 per cent (compared to March quarter) and a 7.5-year instrument at 3.95 per cent (CD) resulted in higher placements by the investing public.

Total inflows were not stated.

The latest offer, which opened yesterday, will close on September 2. Rates range from 2.65 per cent for the shorter-term instrument to 4.20 for the longest.

The offer of BOJ FR (fixed rate) USD-CD 2019U is for an unlimited amount.

The tenor of this instrument is three years and offers a fixed coupon of 2.65 per cent per annum, which is 1.69 percentage points above the current rate of 0.96 per cent on three-year US Treasury. The coupon is paid semi-annually.

The five-year BOJ FR USD-CD 2021K, also for an unlimited amount, comes with a fixed coupon of 3.55 per cent per annum, which is 2.32 percentage points above the current rate of 1.23 per cent on the five-year US Treasury. This coupon is also paid semi-annually.

The seven-year instrument, BOJ FR USD-CD 2023C is for an unlimited amount and has a fixed coupon of 4.20 per cent per annum, which is 2.71 percentage points above the current rate of 1.49 per cent on the seven-year US Treasury. The coupon is paid semi-annually. 

Source:
Avia Collinder
Jamaica Observer
Wednesday August 31, 2016    

http://www.jamaicaobserver.com/business/BOJ-says-market-responsive-to-better-rates-on-longer-term-USD-CDs_72481