Serbia sold out a RSD 10bn (EUR 86.6mn) issue of two-year Treasury notes at an auction on April 14, the public debt administration said.

The issue was oversubscribed with demand totalling RSD 11.6bn, or 115.7% of the offering. The Treasury sold a total of 1,000,000 T-bonds with a variable coupon, equal to the central bank's reference interest rate (9.5% at present) plus 1.49% annually. Payments dates are April 16, 2015 and April 16, 2016.

Serbia started issuing T-notes with a floating coupon rate in August 2012 in order to offer investors a better protection from rising inflation. At the previous such auction held in March 2014, the Treasury sold RSD 8.9bn, or 88.8% of the amount on offer. The securities had the same variable coupon, equal to the central bank's reference interest rate (also 9.5% in March) plus 1.49% annually.

Serbia plans to sell dinar-denominated debt paper worth a nominal RSD 33bn and EUR 225mn of euro-denominated securities in April 2014. In March, the Treasury sold RSD 49.9bn in dinar-denominated debt papers, 83.1% of the monthly target, and EUR 118.0mn in euro-denominated securities (94.4% of the target).