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.

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