Ministry of Finance Reopens 10.5-Year Issue of GS at Record Low Yield


On 29 July 2019 the Ministry of Finance reopened an issue of 10.5-year BGN-denominated government securities (GS) placed on 21 June 2019 and maturing on 21 December 2029. The issue is a reference one in respect of the harmonised long-term interest rate to evaluate convergence level, which is one of the Maastricht criteria.

GS of an aggregate nominal value of BGN 200 million were offered successfully at the auction at a weighted average yield of 0.32%. The yield reported is a record low at the primary market for this maturity segment. The total subscribed amount reached BGN 305.75 million, which corresponds to a bid-to-cover ratio of 1.53.

The spread reported to the analogous German Bunds is 73 basis points. The participants were highly interested, with the biggest amount of GS acquired by banks – 73%, followed by insurance companies with 18%, pension and guarantee funds with 8% and other investors with 1%.

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