Treasury bonds’ yield up to 2.46%

The interest rates of treasury bills continued their growth even in October’s first auction.

According to Bank of Albania data, at this week’s auction, 12-month maturity bonds were issued at a weighted average interest rate of 2.46%, from 2.34% of the previous auction.

At the auction, the government secured all the announced sum of ALL 8.2 billion, while the total value of demands reached about ALL 9.2 billion.

The interest rate on 6-month maturity bonds also went up, reaching 1.82%, from 1.65% of the previous auction.

The primary market for government debt securities is pursuing a gradual increase as far as the interest rate trajectory is concerned, and the curve growth is rather mild and without unexpected blows.

This stage of sustainability is preceded by a genuine growth cycle that is expected to occur starting from next year when, most likely, the monetary policy course may change, as inflation is expected to return to the set target.

On the other hand, the revival of demand and the soundness of the banking system is expected to improve lending, shifting more funds into private sector funding.

However, so far, the relative stability in the bond market is favoring the maintenance of low interest rates in the economy.

SCAN

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