05.11.2013

The Ministry of Finance reopened for the 3^rd time the 3-year BGN-denominated issue of government securities with maturity 30 January 2016. Securities to the amount of BGN 40 million were offered and approved at the auction held on 4 November 2013. The yield of 1.24% has been the lowest one since January 2013, registering a drop by 40 b.p. from the previous auction held for the same issue in July this year. Primary dealers placed offers for BGN 155.35 million, which corresponds to a bid-to-cover ratio of 3.88 which is one of the highest ratios for all auctions held for this issue. Guarantee and contractual funds acquired the biggest amount of GS at the auction, i.e. 64.47%, followed by banks with 30.63% and pension funds with 4.90 per cent. Following this auction, the volume of the issue in circulation has reached BGN 155 million.

The spread against the German benchmark bonds in this maturity segment is 1.14%, which is the lowest value of this indicator since the launch of this issue in circulation in January 2013. The auction yield is lower than that of bonds with similar characteristics of a number of states like Slovenia (4.23%), Hungary (2.91%), Romania (2.25%), Turkey (2.19%), Lithuania (1.44%), Italy (1.43%) and Spain (1.40%).