Demand for government securities 5.5 times higher than supply

The Ministry of Finance reopened the benchmark issue maturating in 10.5 years. At the Monday auction, the Finance Ministry offered government securities worth BGN 50 mln. The weighted average yield of the approved quantity of paper is 4.12% per annum, a record-low for bonds maturing in 10 years.

At the previous auction of securities from this issue, held on July 16, 2012, the paper sold at a 4.73% annual yield and a coverage factor of 4.91.

The participants in the auction made orders worth BGN 273.65 mln, meaning that demand exceeded 5.5 times the amount offered for sale, corresponding to a coverage factor of 5.47.

The 4.12% yield of the paper sold on Monday is lower than the yield of the 5-year Eurobond issue, which was 4.44%. The € 950 mln Bulgarian Eurobonds were issued at the beginning of July 2012.

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