The last treasury auction has carved 68 basis points off benchmark interest rates, resulting from a 13.61 per cent yield on the six-month bill issued Wednesday.

September's bill had yielded 14.29 per cent on a similar tenure, prompting speculation that interest rates could begin to climb again after hovering just above 12 per cent in the pre-election period.

The Bank of Jamaica auctioned $500 million in six-month bills this week, for which subscriptions topped $1.7 billion, a sign that the market is liquid. The September bill of a similar tenure, auctioned just two weeks after the national polls, had only $700 million of subscriptions for a $500 million issue.

A three-month Treasury Bill which was also auctioned Wednesday yielded 13.46 per cent. Applications on that bill more than tripled the $400 million on offer.

The next treasury auction is November 21.

business@gleanerjm.com