The yield on nine-month treasury bills issued by Bosnia's entity Federation of BiH fell further into negative territory on Tuesday as banks snapped up the paper as a cheaper alternative to keeping money at the central bank.
The region met its target, raising 30 million Bosnian marka ($17 million) to help plug a budget gap, with the average yield at -0.04 percent, compared with -0.0167 percent at the previous sale, held last month.
Investors, mostly banks, placed bids of 86.6 million marka, data from the regional Finance Ministry showed.
Bosnia's central bank in July introduced a negative interest rate on commercial banks’ reserves that exceed the obligatory reserve rate of 10 percent to boost lending.
(Reuters)