Slovakia sells EUR 125.8mn T-bills, avg yield rises to 1.06%.

By bne IntelliNews April 24, 2012
Slovakia sold EUR 125.8mn in 343-day zero-coupon T-bills at an average annual yield of 1.06% on April 23, the finance ministrys Debt and Liquidity Management Agency (ARDAL) said. The auction for the T-bills, which mature on April 3, 2013, attracted moderate investor interest, as bids worth EUR 298mn were placed, setting the bid-to-cover ratio at 2.37. Foreign investors placed bids worth EUR 70mn, of which EUR 42mn were approved. The minimum yield requested by investors at Mondays auction was 0.9% and the maximum yield was 1.09%. The cut-off price stood at EUR 99. The previous similar T-bills action, held on April 2, attracted huge investor interest with total bids standing at EUR 1.008bn. ARDAL sold then EUR 485mn in 364-day T-bills at an average annual yield of 0.98%. IntelliNews comment: The recent results from Slovak government securities auctions indicate that the trend for higher demand for shorter-term securities has reversed. On April 16, ARDAL sold EUR 446.1mn in four- and 13-year T-bonds. At the end of last year Slovakia shifted to issuing short-term government papers to refinance its debt, as the aggravated debt crisis in the eurozone led to poor demand for long-term government bonds since the end of October 2011. But in January, demand for Slovak government securities improved, as a two-year T-bond issue, which sold merely EUR 30mn in November, sold EUR 305.2mn, a few days after S&P downgraded the sovereign ratings on Slovakia by one notch to A. In February, Moodys downgraded Slovakias long-term sovereign rating by one notch to A2 and assigned it a negative outlook, but the government managed to sell EUR 351.5mn in two- and four-year T-bonds a few days later. On March 19, ARDAL sold EUR 581.5mn in two- and four-year T-bonds. In January the country sold EUR 1bn of five-year bonds in its first international offering of debt securities since April 2011.

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