Rate of 12-month Maturity Bonds at 2.67%
Albanian Daily News
Published February 7, 2018
Treasury bills' interest rates were stable at Wednesday’s auction and the fall that was reported at the first auction of the year did not persist.
According to Bank of Albania data, 12-month maturity bonds were issued with a weighted average interest rate of 2.67%, from 2.66% in the January auction.
The market continues to show high liquidity as demand in the auction reached the level of Lek 14.3 billion, from Lek 10.2 billion that was the amount announced for financing by the Ministry of Finance.
However, the interests did not fall further, which proves that, for the time being, the market has found a kind of balance and expectations are for the continuation of the slight and gradual trend on the rise.
Experts believe this scenario is more similar to the 2018 government debt securities market.
The Bank of Albania has announced that it will continue the alleviating monetary policy for this year, without increasing the key interest rate.
However, the improvement of the economy and the increase in inflation strengthen the expectations for an increase of interest rates in the mid-horizon.
These aspects may be reflected in a higher interest from the public in the financial market starting from this year.