Moldova (bbabo.net), - The Ministry of Finance placed 1.16 billion lei ($65.2 million) worth of state securities (GS) at auction on February 15. As reported by the National Bank (NBM), the issuer of securities satisfied all the applications of investors, increasing the yield of government securities. The Ministry offered securities worth 1.28 billion lei, and the demand for them amounted to 1.16 billion lei, infotag.md reports.

As a result of the auction, the following weighted average effective yield was fixed: 91-day security - 9.38%, 182-day - 11.61% and 365-day - 12.90%.

For longer-term securities, the yield covers the base rate of the NBM, which the Bank's Executive Committee on February 15 raised by two percentage points at once - from 8.5% to 10.5%.

In the opinion of professional market participants, interest rates on state securities will grow taking into account the inflationary trend this year. According to the updated forecast of the NBM consumer price index, in 2022 the average annual inflation rate will be 18.8%.

At the same time, market participants note that the situation in the budget will influence the yield of government securities. "If the Ministry of Finance needs additional resources, the demand for which will increase on its part, then the yield on government securities will also progressively grow.

And vice versa, if the demand for resources is low, then the issuer will have no reason to increase interest rates on government securities," the agency's interlocutor noted.

At the last auctions for the placement of government securities, the Ministry of Finance reduced the offer of securities from 2.2 billion lei to 1.28 billion lei. At several auctions in a row, the issuer of securities slightly raised rates on semi-annual securities, while maintaining the same yield on short 91-day securities, which amounted to 8.98%.

bbabo.Net