Cyprus bond yields stable, government drains CYP 328 mln

Cyprus bond yields were stable during the multiple bond auction held on March 29 with the major characteristic being the excess cash circulating in the market as the government received a total of CYP 561.62 mln bids for its bonds.

The Central Bank, on behalf of the Finance Ministry eventually decided to accept CYP 328.20 and drain the excess cash from the system.

During the 5-year 4.25% bond issue for up to CYP 50 mln, the Central Bank received a total of CYP 78.38 mln bids, of which it accepted only CYP 50 mln at the weighted average price of CYP100,03 per CYP100 nominal value representing an annual yield of 4.24%, which is the same since the last auction held in February.

During the 10-year 4.50% bond issue for up to CYP 50 mln, the Central Bank received a total of CYP 127.03 mln bids, of which it accepted only CYP 50 mln at the weighted average price of CYP100,50 per CYP100 nominal value representing an annual yield of 4.44%, down slightly from the 4.47% yield agreed at the last auction held in February.

During the 13-week Treasury Bill auction for up to CYP 75 mln of paper on offer, there was an under-subscription as the Central Bank received applications for only CYP 58 mln, of which it accepted CYP 28 mln at the weighted average price of CYP991,08 per CYP1.000 nominal value representing an annual yield of 3,61%, slightly above the 3.56% yield at the most recent auction held in February.

During the 52-week Treasury Bill auction for up to CYP 75 mln, there was more interest as the Central Bank received a total of CYP 50.20 mln of bids of which it accepted a total of CYP 50.20 mln at the weighted average price of CYP 960.63 per CYP1.000 nominal value representing an annual yield of 4.12%.

The Central Bank of Cyprus announced that during the auction conducted on 29  March 2007 for the acceptance of deposits of 14-day duration, bids amounting to CYP248,0 mln were submitted, and an amount of CYP150,0 mln was absorbed at a weighted average allotment rate of 3.52%.