NTMA State Savings rates are supposed to stay in line with sovereign yields and deposit rates. The rates are in line with neither right now but as correctly pointed out above nobody knows when the rates will be next adjusted. This Sunday is a possibility but it might not happen.Given that the Govt can issue 10yr bonds at yields close to 0.10% pa, and given that the 5yr Savings Cert pays 0.98% pa, am I correct to feel a cut to NTMA retail rates is coming soon?
Meaning they represent good value currently?So the NTMA did not cur this weekend which means that their only likely remaining opportunity to do so in 2019 is the Sunday of the October bank holiday weekend.
Today the 10 year bond rates dropped into negative territory for the first time. State Savings rates are all widely out of line with the bond market.