Interest rate of 10-Year gov’t bonds expected to reach record 7%
The beginning of this year will bring a good investment opportunity in the Albanian government bonds.
On Tuesday, the Ministry of Finance will hold a new 10-year bond for a total of ALL 3.5 billion.
Ten-year bonds are the most durable instrument of public borrowing and consequently provide the highest return on investment.
At the last auction for these instruments, which took place in October 2017, the coupon or average interest rate of 10-year bonds was 6.45%.
The interest rates of government debt instruments recorded a slight upward trend in the last quarter of 2017.
This growth covers both bonds and treasury bills, and that is why expectations are the the same will hold true even for 10-year bonds.
The indicative coupon presented by the Ministry of Finance is 6.9%, so expectations are that the interest on the auction will reach the 7% limit.
A return on these levels is certainly attractive, at a time when the interest rates in the financial markets remain close to the lowest historical values.
Consequently, it is expected that investors with free funds will be very interested in buying these type of bonds.
SCAN
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