The Ministry of Finance has launched 5-year GS at a negative yield

13.01.2020

On 13 January 2020, the Ministry of Finance launched a new 5-year BGN-denominated government securities (GS) issue. The auction resulted in placement of Government Securities with an aggregate nominal value of BGN 200 million, at a weighted average yield of -0.11%. It is the first time that a negative yield is achieved for that maturity segment, with the spread to the German Bunds with similar residual maturity being 38 basis points.

The subscribed amount totalled BGN 497.25 million, which corresponds to a bid-to-cover ratio of 2.49. The allocation of the approved volume of GS by types of investors shows that banks were most active, acquiring 64% of the issue volume, followed by insurance companies with 26.5% and pension funds with 9.5%.

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