Interest rate of treasury bills nears level of 2%

Interest rates of treasury bills rose once again in this week’s auctions, ending, for the moment the short cycle of declining interest that had characterized the first months of 2017.

At Tuesday’s auction, 12-month maturity bills were issued at an average interest rate of 1.95%, up from 1.8% of the previous auction.

Meanwhile, the six-month bills recorded a slight increase of the interest rate at 1.54%, from 1.52% that it was at the last auction.

The market demand was still high, at around ALL 14.6 billion versus ALL 12.8 billion total government bills announced.

This shows that the market currently has reached an equilibrium after the rapid growth of interest rates in the last four months of last year and partial downward correction for the first four months of this year.

Returns on investment in bonds are now at reasonable levels, with a kind of normal proportion in relation to other interests in the financial market.

Experts expect interests to remain low during the year, in keeping with the alleviating monetary policy.

This means lower returns on investment of savings in financial products, but, on the other hand, low interest rates on bank loans.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.