10-year Albanian gov’t bonds auctioned at 7% interest rate
The interest rate of Albanian government debt securities began 2018 in increase.
According to data from the Ministry of Finance, 10-year bonds were issued with an average interest rate of 7%.
As expected, the coupon increased compared to the previous auction when the 10-year bond was issued at 6.45%.
The government had announced $ 3.5 billion in bonds for sale, while the demand for auction participants was higher than 4.5 billion.
In a environment with very low interest rates, the government bonds remain an instrument where investors can provide the most satisfactory return.
10-year maturity bonds offer highest profit, which also explains the considerable demand from investors to buy at auction.
In the second half of 2017, government debt interest rates have increased.
This reflects a tendency of market towards equilibrium to more reasonable levels, as the interests had touched the lowest historical values.
Experts expect a continuation of sluggish interest rates even in 2018.
SCAN
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