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The tomorrow/next interest rate (T/N) is an uncollateralized day-to-day interest rate for money-market lending. The T/N interest rate is calculated as an average of the interest rates on actual lending.The market for day-to-day loans is divided into several segments, depending on the starting point of the transaction. The T/N market, which is the dominating segment, comprises loans commencing on the first banking day after the transaction date and expiring on the second banking day after the transaction date.
Calculation of the T/N interest rate is based on daily reports from 11 banks. Each bank reports the uncollateralised day-to-day inter-bank lending and the average interest rate for these loans. The report is made with a time lag of one day, e.g. Monday's lending is reported on Tuesday. On the basis of the reports Danmarks Nationalbank calculates an average interest rate which comprises each bank's interest rate weighted according to the bank's share of the total reported lending.
Danmarks Nationalbank publishes the average interest rate at 12.00 noon on the reporting day, but until 1.00 p.m. the interest rate may be changed if there are corrections to the reported data.
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