Lat­est 13-week T-bill is over­sub­scribed, yield drops to 1.17%

Financial Mirror (Cyprus) - - FRONT PAGE -

The Cyprus gov­ern­ment sold EUR 100 mln worth of 13-week Trea­sury Bills on Mon­day, with the Fi­nance Min­istry’s Pub­lic Debt Man­age­ment Of­fice say­ing that bids were six times over­sub­scribed, push­ing yields fur­ther down.

The PDMO said that ten­ders for a to­tal amount of ap­prox­i­mately EUR 619 mln were sub­mit­ted, with a weighted av­er­age yield of 1.17%. The ac­cepted yields ranged be­tween 1.00% and 1.25%.

This fol­lows last week’s suc­cess­ful re­turn to the bond mar­kets when Cyprus raised EUR 1 bln from a 10-year Eurobond (EMTN) with a yield of 4.25%. This was the gov­ern­ment’s third at­tempt since 2011 when it was shut out of mar­kets due to the econ­omy’s spi­ralling con­trac­tion that prompted a EUR 10 bln bailout res­cue by the Troika of in­ter­na­tional lenders (ERC, ECB, IMF).

The gov­ern­ment’s pre­vi­ous 13-week Tbill worth EUR 100 mln yielded 1.58% on Oc­to­ber 2, again sig­nif­i­cantly lower than the pre­vi­ous EUR 100 mln auc­tion on Au­gust 31 with a yield of 1.87% and the higher 2.18% for EUR 144 mln of 13week T-bills sold on July 2.

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