2025, unfavorable for government bonds - High yields at the beginning, but declining interest for investors towards the end of the year
The year 2025 has not been very favorable for investing in government securities. According to data from the Ministry of Finance, the average interest rate for treasury bills and bonds has fluctuated significantly during this year.
These fluctuations have been based on developments in monetary policy, inflationary expectations and market demand for debt instruments.
In the first months of the year, interest rates on government securities remained relatively higher, especially for short-term treasury bills. Yields were supported by a still-tight monetary policy stance and investors’ caution about inflationary risks. This period was characterized by a higher borrowing cost for the government, especially for short-term instruments.
The peak in interest rates was mainly recorded in the first quarter and the beginning of the second quarter of the year, when the demand for higher yields was strongest. Medium- and long-term bonds also reflected this trend, although with more moderate fluctuations compared to treasury bills.
In the second half of 2025, the situation began to change. Average interest rates gradually declined, both for bills and bonds. This was helped by improving inflation expectations, stabilizing financial markets, and an increase in investor interest in government securities, which led to higher demand at auctions.
The lowest interest rates were observed towards the end of the year, when the cost of domestic borrowing for the government eased significantly compared to the beginning of the year. For bonds in particular, the decline in yields signaled greater market confidence and more favorable financing conditions.
Overall, 2025 was characterized by a start with high interest rates and a close with lower yields.
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