Serbia sells EUR 85mn of 53-week T-notes, yields rise

By bne IntelliNews March 4, 2014

Serbia sold RSD 9.9bn (EUR 85mn) of 53-week T-notes, or 98.6% of the amount on offer, at an auction on March 4, the country’s public debt administration said in a statement.

Despite strong demand equalling to RSD 14.3bn (142.6% of the amount on offer), the annual yield rose to 8.88% from 8.58% achieved at the previous such auction held on February 18. The Treasury sold 986,434 securities, maturing on March 12, 2015.

We expect yields on Serb government debt papers to remain high in the following months. The trend reflects both external (lower risk aversion of international investors) and internal factors (fiscal imbalances and political uncertainty ahead of the March early parliamentary elections).

Serbia plans to sell dinar-denominated debt paper worth a nominal RSD 60bn and euro-denominated securities worth EUR 125mn in March 2014. In February, the Treasury sold RSD 33.3bn in dinar-denominated debt papers, 72.4% of the monthly target, and EUR 50mn in euro-denominated securities (100% of the target).

Related Articles

EIB surpasses investment milestone in the Western Balkans by investing €1.2bn in 2023

EIB Global, the financial arm of the European Investment Bank (EIB) for activities beyond the EU, set a new record by investing €1.2bn in the Western Balkans in 2023, the EIB said on February 9. ... ... more

EBRD and AIK Banka forge €50mn loan for Serbian SMEs

The European Bank for Reconstruction and Development (EBRD) is partnering with AIK Banka to provide a €50mn loan for local small and medium-sized enterprises (SMEs) in ... more

bne IntelliNews Southeast Europe Outlook 2024

This Southeast Europe Outlook 2024 has been prepared by bne IntelliNews as part of a series of annual reviews providing updates on the geopolitical, macroeconomic and commercial state of ... more

Dismiss