Test Drive 2q:2014 | Page 16

Domestic Debt Markets I n the second quarter of the 2014 financial year, the Governor of The Bank Of Sierra Leone, Dr. Sheku Sambadeen Sesay announced a major policy stance that will see the lowest bond yields in Sierra Leone for over a decade. The markets reacted to the Governors’ keynote speech which witnessed yields on 182-day notes fall to 9.74% on May 10, down almost 16 percentage points since the last sale of 2012. Debt with 364-day maturities finally retreated 14% to 11.4% from the previous week. Central Bank Treasuries – Snapshot of May Notes Sierra Leone benchmark yield: May 2014 issue 91-Days 182-Days 364-Days Amount Issued (SLL. Mn) 7,480.20 13,923 19,175 Highest Bid Price (%) 99.8 98.8 95.2 Lowest Bid Price (%) 99.5 98.4 94.6 Lowest Accepted Price (%) 99.5 98.6 94.9 Average Discount Price (%) 99.58 98.69 95.11 Annual Yield (%) 1.69 2.66 5.14 Central Bank Treasuries - Snapshot of June Notes 91-Days 182-Days 364-Days Amount Issued (SLL. Mn) 6,041.90 25,431.15 30,060.15 Highest Bid Price (%) 99.7 98.9 95.5 Lowest Bid Price (%) 99.5 98.8 95.2 Lowest Accepted Price (%) 99.5 98.8 95.2 Average Discount Price (%) 99.5 98.82 95.27 Annual Yield (%) 2.02 2.39 4.96 Central Bank Treasury Bills -Varying Maturities & Issue Values Bank of Sierra Leone Varying Notes Maturity Period Issue Date Maturity Date Amount (Le) 91-Days 12-Jun-14 11-Sep-14 4,552,800,000.00 182-Days 12-Jun-14 11-Dec-14 12,107,650,000.00 364-Days 12-Jun-14 11-Jun-15 6,950,800,000.00 Average Retail Prime Lending Rates 2Q: 2014