Interest rates of 12-month treasury bills at 2.16%
The interest rates of the Albanian government’s treasury bills rose again slightly in Tuesday’s auction.
According to data from the Bank of Albania, 12-month maturity bills were issued with a weighted average interest rate of 2.16%, from 2.14% that it had been in the previous auction.
The market demand for bonds was again high, for a total of about ALL 7.9 billion, compared to ALL 7.2 billion announced by the government for funding.
Meanwhile, the weighted interest rate on 6-month maturity bills remained unchanged at 1.65%.
But this auction secured ALL 1.870 billion, versus ALL 3 billion announced by the government for funding.
In recent months, the government debt instruments market is on a steady path, following strong interest rate fluctuations since the middle of last year.
The 12-month bills have reached a point of equilibrium at 2%.
This level provides a reasonable return for investors, yet being a favorable borrowing rate for the government as well.
On the other hand, this level of bond yields does not exert significant pressure on increasing interest rates on deposits or bank loans, favoring the continuation of low interest rates in the economy.
The core scenario, experts claim, is the sustainability of bond interest rates at similar levels, with no major fluctuations, in reflection of the alleviating monetary policy.
A sound and stable rise in interest rates in financial markets may be more likely to occur from next year when inflation is expected to reach the Central Bank target, which may dictate a new course as far as the monetary policy is concerned.
*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.