Bulgaria's finance ministry said that a July 22 auction for 10.5-year bonds worth BGN 50mn (EUR 25.5mn) was cancelled due to a technical mishap. The technical error prevented some of the participants from placing their offers. The ministry said on its website the same amount of bonds will be offered again later.
The bonds were to carry an annual coupon of 4%. According to central bank data, the average yield in the failed auction was 4.01%, up from 3.43% in the previous such selling held on the May 27 when 10.5-year securities worth BGN 50mn were placed.
The reason for the 0.58pps yield hike could be in the increased political tensions amid more than a month of anti-government protests in the country. Moreover, considering the size of the filed bids in the annulled auction (BGN 58.4mn), the coverage ratio nearly halved to 1.17 from 2.0 in the May auction.
Bulgaria held seventeen debt issues since the beginning of the year, accumulating a total of BGN 1.49bn in new debt in 2013.
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