T-bill yields hit new record low

TIRANA, May 14 – Treasury bill yields hit a new historic low this week when the country’s central bank sold 11.8 billion lek (Euro 82.6 million) in 12 and 6-month T-bills on behalf of the Albanian government.
Yields on 12-month T-bills which are the key instrument of government’s internal borrowing dropped to a record low of 3.4 percent down from 3.45 percent in the previous auction, 3.83 in early January 2014, and a record 6.6 percent in early 2013. Meanwhile, yields on 6-month yields dropped to 3.27 percent, down from 3.32 percent in the previous auction and 6.08 percent in January 2013.
Experts explain the declining trend in T-bill yields with more active participation by commercial banks which have turned to investments in government securities due to poor demand for new loans as non-performing loans have reached a record 24 percent and lending stands at negative growth rates of 2 percent.
The Bank of Albania organizes 3-month and 6-month T-bill auctions every month and 12-Month T-Bill auctions every two weeks. T-bills are issued and guaranteed by the Ministry of Finance on behalf of the Albanian government.