Government bonds "lose" their shine? - AMF: About 34.6% fewer transactions in the primary market during the first quarter
Fewer individuals have shown interest in investing in treasury bills and bonds during the first three months of 2025.
According to the Financial Supervisory Authority, in the first quarter of 2025, a total of 2,884 transactions were carried out by individuals in the primary market of government securities, with a decrease of about 34.6% compared to the same period a year earlier, when their total was 4,409. Such a decrease in the number of transactions was also accompanied by a decrease in the volume of money invested in treasury bills and government bonds by citizens.
Individuals have purchased in the primary market, i.e. from direct purchases for the first time of government securities through auctions organized by the Bank of Albania, about 9.3 billion lek of government securities. The decrease is 22.7% compared to the first three months of last year, when total investments by individuals were 12.1 billion lek.
On the other hand, the volume of the secondary market of Government securities realized outside the Stock Exchange for the period January-March 2025, which includes the sale of securities between banks, funds and other individual investors, after they were initially purchased by the Bank of Albania and before the end of their term, was dominated by 64% by transactions in long-term instruments (bonds) and 36% by transactions in short-term instruments (treasury bills).
In terms of the number of transactions, 76.80% of all transactions in the secondary market of government securities outside the stock exchange belong to transactions carried out in treasury bills. Participation in the secondary market of government securities outside the stock exchange, for the period January-March 2025, is dominated by individual investors, who carry out 97% of all transactions in this market.
Treasury bills are short-term financial instruments with maturities of 3, 6 and 12 months, while bonds are medium- and long-term instruments. This year, 20-year bonds were issued for the first time as a market test.
To invest in treasury bills and bonds, citizens can participate directly in the Bank of Albania auctions or invest indirectly through investment funds, pension funds and other institutions authorized to invest in these instruments.
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