Interest rates of gov’t’s debt instruments at stable levels in last three auctions

The primary market of treasury bills and government bonds was confirmed as sustainable in Tuesday’s auction.

According to data from the Bank of Albania, 12-month maturity bonds were issued at a weighted average interest rate of 2.06%, almost at the same levels as the two previous auctions.

The market demand for bonds was still high, amounting to a total of ALL 11 billion versus ALL 9.2 billion announced by the government for funding.

A similar trend was also reported in the auction of two-year bonds.

Coupon bond or bond interest increased slightly to 2.55%, from 2:44% that had been in the auction of last month.

The slight rise in interest rates was influenced by the fact that demand at the auction was lower in ALL 4.85 billion from 5 billion announced by the Ministry of Finance.

However, in the last two months, the market of government debt instruments is showing stable signs, after strong fluctuations of interest since the middle of last year.

In the second half of 2016, interest rates grew rapidly, a growth that was corrected, in the first months of this year, near current levels, something that shows that the market seems to have found a kind of stability.

The financial system remains liquid and it favors the transmission of the alleviating monetary policy, but, however, without reaching extremely low levels of a year ago.

SCAN

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