Yields Fall on Macedonian Three-Month, Six-Month T-bills

The average annual yield on a 700 million denars ($14.6 million/11.2 million euro) issue of 91-day T-bills edged down to 7.61 % from 7.65% in the previous auction held on October 21. Commercial banks placed bids for 412.49 million denars worth of three-month government paper but the Finance Ministry approved only 312.49 million denars worth of bids.

The average annual yield on a 400 million denar issue of 182-day T-bills fell to 7.69% from 7.86% at the previous auction for thsi maturity held on October 7. Commercial banks placed bids for 245.09 million denars worth of six-month paper, but the Finance Ministry approved only bids for 145.09 million denars worth of T-bills.

The Finance Ministry is in charge of developing the primary market for government securities, while the central bank develops the secondary market in cooperation with the ministry. The central bank relies on two main instruments, T-bills and repo deals, to control liquidity on Macedonia's money market and achieve the objectives of its monetary policy.

(1 euro = 62.2553 Macedonian denars)