Wednesday, July 12, 2006
MACEDONIA: Yields on 3 and 6-mo T-bills Decrease
The yields on Macedonia's three- and six-month discount Treasury bills decreased on Tuesday, although the issue of the 92-days bills was undersubscribed, showed the country's central bank data.
The average annual yield on the 350 million denars (EUR 5.7 mln) issue of 182-day bills fell to 6.73% on Tuesday from 6.92% in the previous auction on June 6.
Domestic banks subscribed for over 537.3 million denars worth of T-bills but the Finance Ministry only approved bids for the amount on offer.
Macedonia banks placed bids for 1.245 billion denars worth of 92-day government securities against 1.3 billion denars on offer and the ministry approved all the bids.
Yields fell to 6.34% from 6.89% in the previous auction held on June 20.
The liquidity in the banking system increased after the central bank eliminated its fixed repo rates and limited the supply of repo funds in October.
The Finance Ministry, NBRM and the Macedonia Stock Exchange (MSE) join forces to develop the primary market for longer-term Treasury and central bank bills, as well as the secondary market.