- The JOD 25mn issue attracted JOD 51mn in bids, resulting in a bid-cover ratio of 2.04
- The weighted average yield stood at 5.814%, with the bills maturing on December 25
- The auction follows the Central Bank of Jordan’s September policy-rate cut, while CPI inflation accelerated to 2.73% y/y
The Central Bank of Jordan sold JOD 25mn in 61-day Treasury bills at a weighted average yield of 5.814% in an auction held on October 25. The offering attracted bids worth JOD 51mn, producing a bid-cover ratio of 2.04. The bills will mature on December 25, 2026.
The result indicates that the government secured more than twice the amount offered in investor demand at the latest short-term auction. However, a single auction provides only a limited indication of broader demand for government debt, particularly given the short maturity of the instrument. The 5.814% yield is broadly consistent with the current level of domestic money-market and policy rates.
The auction follows the Central Bank of Jordan’s decision to cut all monetary-policy rates by 25bps on September 21, taking its main policy rate to 6.00%. The central bank has reduced rates by a cumulative 175bps since September 2024. Meanwhile, CPI inflation accelerated to 2.73% y/y in September from 2.66% in August, according to the Department of Statistics, while consumer prices increased by 0.16% m/m. The modest inflation increase is unlikely on its own to alter the current monetary-policy stance, but it will remain relevant as the central bank balances domestic price developments with the need to preserve the stability of the dinar’s peg to the US dollar.