Yields on Albania’s 2-year bonds edge up on weak demand.

By bne IntelliNews December 20, 2013

The Albanian central bank sold ALL 1.96bn (EUR 14.1mn) in two-year fixed-rate government bonds at an auction on December 19, cutting the initial offer of ALL 4bn on weak demand, the bank said on its website.

The issue was undersubscribed for the third consecutive auction as bonds sales matched the investors’ demand.

This corresponded to a low 0.49 coverage ratio, down from 0.82 at the previous auction held on November 19, when the bank also cut the initial offer. The average yield at the latest auction edged up by 7bps to 4.92%.

The central bank, which places state securities on behalf of the government, has sold ALL 41.2bn in two-year fixed-rate bonds since the beginning of 2013, while total lek-denominated bonds amounted to ALL 114.7bn.

Meanwhile, the bank informed it will auction EUR 40mn in 2-year euro denominated bonds on December 24. This will be the first euro denominated bond auction for 2013.

Related Articles

Albanian opposition party splits after disastrous election performance

Members of Albania’s main opposition Democratic Party (DP) that have been excluded from the party by its leader Lulzim Basha plan to establish a new political movement, local media reported on ... more

Albania's new government to make drastic job cuts in public administration

The new Albanian cabinet plans to drastically slash the number of employees in the public administration to make it more efficient. Prime Minister Edi Rama recently ... more

Dozens of ethnic Greeks arrested in Albania's Himara

Tensions in Himara, a coastal city in southern Albania, have risen after dozens of members of the Greek minority in the area were detained. The arrests were reportedly made after residents were ... more

Dismiss