Yields Fall on Bulgaria's Seven-year Government Bonds
Thursday, 25 September 2014
Yields fell at Tuesday’s auction of seven-year euro-denominated Bulgarian government bonds as the offer was heavily oversubscribed.
The Finance Ministry said on Wednesday it has reopened the issued dated 30 April 2014, offering 35 million euros worth of government bonds.
The average weighted annual ayield dropped to 2.20% from 2.26% at the previous reopening on May 26.
The yield achieved in Tuesday’s auction is lower than yields on euro-denominated government bonds with similar residual maturity of EU members Hungary (2.24%), Romania (2.25%), Portugal (2.39%), Croatia (3.74%) and Bulgaria’s southern neighbour Turkey (2.82%). The spread over benchmark German Bunds in this segment is 185 b.p., the Finance Ministry said.
The offer was 2.68 times oversubscribed with investors placing bids for a total of 93.79 million euros worth of government paper. The issue will mature on 12 February 2021.