Bulgaria's 10.5-year T-bonds yield up amid political crisis

By bne IntelliNews March 11, 2013

On March 11, Bulgaria raised BGN 50mn (EUR 25.6mn) in an auction for 10.5-year Treasury bonds with an annual coupon rate of 4%.

As expected, the yield rose to an average of 3.63%. This puts an end to the downward trend that persisted during the whole 2012.

Less optimistic economic prospects and mass protests in the country that led to resignation of the government on Feb 20 have clearly resulted in rising perceived risk. Early indications for a possible shift to a more expansionary fiscal policy and public debt increase have also contributed to investors' rising fears about government's finances.

We anticipate that bond yields will be heading higher at least till the early parliamentary election in May due to uncertainties about the political situation in the country at present.


Related Articles

Bulgaria’s opposition BSP files no-confidence motion against government

Bulgaria’s opposition Socialist Party (BSP) filed a no-confidence motion against ... more

Bulgarian parliament overturns president’s veto on corruption bill

The Bulgarian parliament has overturned a veto by President Rumen Radev on the controversial anti-corruption law that was adopted in December despite strong objections from the ... more

Bulgarian capital mulls car ban to tackle air pollution

The Sofia city authorities have announced plans for wide-reaching measures to curb high levels of air pollution in the capital.  Bulgaria has the highest levels of PM10 concentrations in ... more