The yield on ten year treasury bonds dropped to the lowest level in almost four years, falling to 4.948%.
The Cypriot 10-year bond which matures on 2020, fell at the secondary bond market at 4.948% at the end of transactions on Thursday. The previous day it had closed at 5.008%.
As a result the margin against the respective German bond with a yield of 1.402% dropped to 3.546%.
This is the second time since 2010 that the 10-year bond falls under 5%. The first time was recorded on April 10 when the bond reached a yield of 4.98%.
However, international market turbulence caused the yield to follow an upward trend before the European Elections, recording a yield of 5.212% on May 22. On June 14 2012, it had recorded a historic high reaching 16.46% only beginning to drop after Cyprus applied to the European Stability Mechanism for a bailout.
The country's borrowing costs soared once again in March 2013, when an unprecedented Eurogroup decision on an uninsured deposits `haircut` sparked fears of a possible default among investors.
Positive reviews of Cyprus` international lenders`, collectively known as the Troika (EC, ECB, IMF) so far as well as the economy`s upgrades by international credit ratings agencies have contributed to the fall of the country`s borrowing costs.
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