Securities Issue on RGSM Increase
The number of securities issued on the Regional Government Securities Market (RGSM) during the first eight months of 2018 was on par with the record number of 59 recorded in 2017.
That was one of the key messages from the report on the performance of the RGSM for the period January to August 2018, presented to the Regional Debt Coordinating Committee (RDCC) at its meeting on 4 October.
The RDCC, which has direct oversight of the RGSM, recognises the increased interest of residents in the Eastern Caribbean Currency Union (ECCU) in the RGSM. The RDCC noted that investors demonstrated strong support for government bonds as the participating governments issued six bonds in the first eight months of 2018 compared with two for the same period in 2017.
The RDCC is of the view that the increased issuance of bonds is consistent with the goals of the Medium Term Debt Management Strategy to increase the average time to maturity of the public debt which in turn reduces the risks in the debt portfolio.
The RDCC reported that government securities continue to provide an attractive option for residents seeking to increase returns and/or diversify their investment portfolios. Over the period January to August 2018, the average rate on short term securities ranged from 2.5 per cent to 4.0 per cent, while rates on longer term securities ranged from 5.5 per cent on two-year bonds to 7.3 per cent on 10-year bonds.
The RDCC comprises senior officials from the Ministry of Finance of the eight ECCB member governments and the Governor of the Eastern Caribbean Central Bank.
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