Bulgaria sells EUR 153.4mn in one-year T-bills, yields down

By bne IntelliNews September 3, 2013

Bulgaria sold BGN 300mn (EUR 153.4mn) worth of T-bills on Monday, Sep 2, the central bank said. The debt issue attracted bids for slightly over BGN 1bn, resulting in a coverage ratio of 3.53.

The relatively high demand may be explained with the recent injection of liquidity in the domestic debt market as two weeks ago the government repaid local creditors the BGN 800mn it borrowed back in February. In addition, it is likely that investors' demand for short-term treasuries is currently higher compared to longer maturities due to the uncertain political and economic environment in Bulgaria and the rising long-term interest rates on a global scale.

The central bank reported that the average yield of the Sep 2 issue dropped to 0.6% from 2.35% in the previous such auction held in December 2010.

In mid-August, the parliament lifted the ceiling on this year's new debt from BGN 2bn to BGN 3bn, allowing to government to borrow the extra funds it needs to finance its programme. Bulgaria has accumulated BGN 1.84bn in new debt so far in 2013. 

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