15-year bond auction reopens/ Purchase amount at 1.5 billion lekë

2026-07-27 17:55:00, Ekonomi CNA

The Ministry of Finance will hold the reopening of the 15-year bond auction next week. The amount of bonds that will be offered for purchase to investors is 1.5 billion lek.

The auction will be a reopening of the June auction, which marked a further increase in the yield of these instruments.

The coupon and uniform yield received increased slightly to 6.22%, from 5.75% in the previous auction in April. The yield on these instruments has reached its highest level since November 2024.

In the last auction, a decrease in investor demand was observed. The total amount of requests was around 1.41 billion lek, failing to meet the announced financing amount of 2 billion lek.

According to information from the Bank of Albania, in the auction held on Wednesday, the coupon and uniform yield received increased slightly to 6.22%, from 5.75% in the last auction in April.

The yield on these instruments has reached its highest level since November 2024.

A decline in investor demand was observed at the auction. The total amount of requests was around 1.41 billion lek, failing to meet the announced financing amount of 2 billion lek.

The yields of Albanian government debt instruments have marked an upward correction starting from the second quarter of the year, after a continuous downward trend of approximately two years.

The conflict in the Middle East and inflation have strengthened expectations for interest rate increases.

According to data from INSTAT, in June inflation reached 3.2%, the highest since the end of 2023.

The Supervisory Council of the Bank of Albania, at its last meeting, at the beginning of this month, decided to keep the key interest rate unchanged at 2.5%, arguing that the supply hit from the crisis in the Middle East will be temporary.

However, the return of oil price increases during July has created premises for further inflation increases in the short term, while a final solution to the conflict between the US and Iran does not yet appear on the horizon.

On the other hand, core inflation is also marking high and rising levels. In June, core inflation reached 3.54%, the highest level since 2023.

Under these conditions, the likelihood of an imminent increase in interest rates seems to be increasing.

This is expected to put upward pressure on government bond yields, especially those with longer maturities. For this reason, the 15-year bond auction could be a good option for investors looking to increase returns on their savings or investment portfolios.

Individuals or entities interested in investing can participate in bond auctions through commercial banks licensed by the Financial Supervisory Authority (AMF) as brokerage companies for investing in securities.

The banks licensed for this service are ABI Bank, BKT, Credins Bank, Fibank, Intesa Sanpaolo Bank, OTP Bank, Raiffeisen Bank, Tirana Bank and Union Bank. The minimum amount for participation in bond auctions is 300 thousand lekë.

For amounts up to 50 million lek, investors can submit competitive or non-competitive requests to the auctions, but any request whose value exceeds 50 million lek is classified as a competitive request regardless of the entity participating in the auction./Monitor