T-bills dominate government securities market

TIRANA, April 25 – The secondary market of government securities was dominated by transactions in short-term instruments (T-Bills) at 70.26 percent and long-term instruments (treasury-bonds) at 29.74 percent during the first quarter of this year. The Financial Supervisory Authority says that in terms of the number of transactions, 96 percent of all transactions in the secondary market of government securities were in T-Bills. Participation in the government securities secondary market was dominated by individual investors, who performed about 97.05 percent of all transactions in the market.
Treasury bill yields recorded another increase in the latest central bank auction, proving the poor reflection of the key interest rate cuts. 12-month T-bill yields slightly rose by 0.02 percent to 7.35 percent, continuing their upward trend since mid-November 2011 despite the central bank having lowered the key interest rate by 1 percent to a record low of 4.25 percent in four consecutive interventions since then.