Bulgaria Sold 409 Mln Euro in 6-Mo T-bills at 1.0% Yield

Bulgaria Sold 409 Mln Euro in 6-Mo T-bills at 1.0% Yield

Bulgaria sold on Wednesday 800 million levs ($547 million/409 million euro) in six-month Treasury bills at an average weighted annual yield of 1.0%, the country's finance ministry said.

At the previous auction of six-month government securities, held in 2011, an average annual yield of 1.38% was achieved, the ministry said in a statement published on its website.

On Wednesday, dealers placed bids for 1.15 billion levs worth of T-bills, which resulted in a bid-to-cover ratio of 1.45.

The bulk of the offer, some 81.3%, was acquired by the local banks, while the pension funds bought 9.5% of the entire issue.

"The results of today's auction come to prove the market's confidence in the policy of financial stability which the state is pursuing," the ministry said.

Earlier on Wednesday prime minister Boiko Borisov submitted the cabinet's resignation to parliament following a week of street rallies across the country which started as a protest against high electricity bills but escalated into anti-government marches.

On Monday Borisov announced he will replace finance minister Simeon Dyankov over lack of support from the ruling party and the public. Dyankov had said he was firmly opposed to paying local farmers delayed EU subsidies from the state budget before before mid-March, whereas the prime minister had promised the farmers, who threatened to hold protests in downtown Sofia, that they would get the money by February 22.

Following the government's decision to pay local farmers subsidies from the country's fiscal reserve, Bulgaria had to revise its plans to issue public debt worth 1.2 billion levs in 2013, to keep its fiscal reserve at a sustainable level until the European Commission reimburses those funds, the ministry said last week.

Bulgaria's fiscal reserve at the end of 2012 stood at 6.1 billion levs, equivalent to 7.8% of the projected gross domestic product.

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