The Central Bank of Costa Rica has implemented the calculation and publication of a sovereign par yield curve in USD, providing a new benchmark view of yields across maturities in Costa Rica’s USD public debt market. The curve will be published on the central bank’s website every Wednesday, or on the preceding business day if Wednesday is a holiday. The par yield curve links bond yields to time to maturity, using an average yield-to-maturity concept, and is estimated for maturities out to 15 years to address gaps where no bonds trade at certain tenors. The methodology draws on all primary and secondary market transactions in USD-denominated bonds issued by the Ministry of Finance and the Central Bank of Costa Rica, incorporates a short-term reference rate based on the prior week’s weighted-average overnight USD rate in the Integrated Liquidity Market, and applies outlier filtering to remove extreme observations. Outputs will include an estimated curve for maturities from 1 to 3,600 days (using a 360-day year convention) and will be available as both a selected-maturity table and an interactive PowerBI report. A committee appointed by the Central Bank’s Markets Commission will review the curve weekly and may recommend methodological adjustments, subject to approval by the Markets Commission.
Central Bank of Costa Rica 2025-02-24
Central Bank of Costa Rica launches weekly publication of a sovereign USD par yield curve
The Central Bank of Costa Rica has introduced a sovereign par yield curve in USD as a benchmark for yields across maturities in the country's USD public debt market. Published weekly, the curve is based on transactions in USD-denominated bonds and includes a short-term reference rate, with outputs available in table and interactive report formats. A committee will review the curve weekly and suggest methodological changes as needed.