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Cyprus 10-year bond yields over 5%

03 July, 2014

The Cyprus 10-year bond (2020) exceeded the 5% mark in the secondary markets on Monday, resuming an upward trajectory since the three-year low recorded on June 12.
The receding yield had been the main reason driving the government to return to the markets last month when it issued a 5-year €750 mln bond at 4.75%, confident that it could secure better yields during the next issue, expected to be €1 bln in Autumn.
The 10-year bond yield reached 5.044% compared to a 4.68% on June 12, which represented a three-year low. The spread compared with the benchmark German 10-year bond stood at 3.80%
Cyprus return to the markets came 15 months after the country entered a financial adjustment programme, agreed with the European Commission, the European Central Bank and the IMF on March 2013.
According to Fitch rating agency, Cyprus’ return to the markets was the quickest compared to other bailed out countries. Ireland and Portugal took 20 months to return to the markets following their programme, whereas Greece took approximately four years.