Kian Debt Market Observer

Rate adjustment in Islamic Treasury Bills at the beginning of the Persian year brings weighted average return down by 2%.

According to the Governor of CBI, declining term deposit interest rates of lower than 15% is not expected this year due to the current economic conditions and supply and demand in the money and capital markets. Stating that rates in different markets are affecting each other, he further pointed out that the coupon rate of recently issued securities by the government -which was higher than the approved rate of the Money and Credit Council- as one of the factors affecting deposit rates. He also stated that the interbank rate which was reduced to 17% has now increased over 18%. On the other hand, the CEO of Farabourse mentioned that Treasury Bills yields are affected by deposit rates offered by unregulated financial institutions and are being traded between these institutions at volumes 60 times that of the Treasury Bills.

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