03.02.2014

The Ministry of Finance successfully placed 3-month Government Securities (GS) with nominal value BGN 400 million. At the auction held today the annual average weighted yield achieved is 0.45%, while yield at the issue maturity on 5 May 2014 - 0.11%. The coverage coefficient was 1.53 and the subscription reached BGN 612.5 million. The GS acquired at the auction was distributed in a ratio 75% to 25% between banks and guarantee funds.

The spread to the benchmark German Bunds in this segment on an annual basis is 40 b.p. The yield achieved at maturity is below that of the yield achieved at auctions for short term bods with similar maturities of EU Member States such as Lithuania (0.30%), Malta (0.32%), Spain (0.34%), Slovenia (0.39%), Portugal (0.50%), Croatia (0.70%), Romania (2.00%), Hungary (2.82%) and Greece (3.75%).