PDMO sells 12 mln in 6-year bonds, cuts future rates
The Ministry of Finance sold 6-year government bonds worth EUR 12 mln in its monthly offer this week, but also proceeded to lower the interest rates for a second time that had made the retail bonds attractive to individual investors. The Public Debt Management Office said that for the May bonds, the Republic received 92 offers for the total of EUR 11,918,700, of which 5 mln were foreign investors.
On Wednesday, the PDMO said it was lowering the interest rate on future bonds starting from the September series, to be offered on August 3-20. Thus, the rate will be lowered to 2.5% for the first 24 months, 2.75% for 24-48 months, 3.00% for 48-60 months and 3.25% for 60-70 months. This will generate an average 6-year yield of 2.79%, down from the 4% average at the launch of the programme. As a consolation prize, the PDMO said that the present rates will be maintained through the current and previous bond issues, until they expire.