A new auction for three month treasury bills opens

A new auction of three month treasury bills with an annual yield of 2.6%, opened for citizens on Monday. Government is hoping to collect €1.2 billion in new debt to citizens. The minimum purchase is one €1 000, with citizens able to roll their existing treasuries.

According to the advisor to the FINA financial agency's board of directors and the director of the Services Sector for the Financial Industry, Gordana Soldo, the auction got off to a strong start: “We notice every time, especially for three-month treasury bills, as we popularly call them, that the trend is growing and there is always a growth trend of around 20% between one auction and the next, while the number of investors for one-year treasury bills has somehow stabilized at 23 thousand investors. We have already seen strong interest this morning as by 11:00, a little more than 2 300 purchases had been registered.”

Soldo went on to note that citizens have three options when it comes to purchasing the Treasury Bills: "Everyone who invested in the June issue and whose treasury bills mature on September 18th can reinvest and thus register their offer. They can do this at a FINA branch office, or literally with two clicks through E-Treasury or M-Treasury services."

For his part Prime Minister Andrej Plenković said that government’s decision to activate the treasury market has been positive: "I think we have made a great move in terms of confidence and the direction of the economic and fiscal policy we are pursuing. And as far as the minister told me, the funds booked on the first day are significantly higher than during the previous auction. So, I expect that over the next week, while the auction lasts for citizens, and then if anything remains for institutional investors, that this will be a very successful auction."

Source: HRT