Bonds interest rates fell to 2.46%
Interest rates of treasury bills fell for the fourth consecutive auction this week, confirming a new cycle of lowering of interest rates.
According to data from the Bank of Albania in auctions this week, 12-month maturity bonds were issued at a weighted average interest of 2.46%, down from a level of 2.81% of the previous auction.
The interest rate of bonds with a maturity of 6 months dropped to 1.7% from 2% that had been in the previous auction.
After a significant growth in the last quarter of last year, the interest rates are now stabilizing and the main reason is the significant growth of the financial market demand to invest in bonds.
Investors are channeling more funds into the market, signaling a greater amount of free liquidity in the financial system.
11.9 billion ALL of bonds were offered at auctions by the Ministry of Finance, while the total demand amounted to 19.5 billion ALL.
The stabilization of interest rates is expected to affect the low interest rates for bank deposits and loans.
However, this new cycle of falling interest rates is not expected to reach the size of the middle of last year, where 12-month bonds touched a historic minimum of 1.24%.