03.04.2012

The MoF expended the spectrum of possible investment alternatives in 2012 issuance year by offering on 2 April 10-year government securities (GS) issued in 2008 with maturity 2018. The bond has been reopened for the first time since its opening 4 year before and its residual maturity is six years. At the last auction for the bond at the end of 2008 the weighted average of the annual yield was 7.36%. The yield of the approved amount of BGN 42.2 million at the auction held yesterday showed a significant drop of 324 basic points reaching 4.12%. Part of the orders received were not approved because of considerable deviation of the declared thereunder yield from the one of the other orders approved for participation in the auction. The result yet again confirmed the continuing downward yield trend thoughout the sovereign benchmark curve. Given the GS residual maturity interest theirein showed mainly banks acquiring 80% of the auctioned GS.

The fiscal sustainability, the favourable macroeconomic conditions and the successful implementation of the 2012 budget lead to the MoF continuing its policy to provide a wide range of investment instruments while observing the best possible conditions for the State.