Cyprus sells 26-week Tbills, av yield 2.02%

Cyprus sold 200 mln euros worth of 26-week treasury bills on Wednesday with an average yield of 2.02%, up from a yield of 1.24% at a similar auction a year ago.
The finance ministry sale was oversubscribed, with bids coming in at 365 mln euros. Yields on the bids accepted ranged from 1.85% to 2.20%.
With an issue date of January 3, 2011, the issue would cover financing needs next year, Phaedon Kalozois, head of the Public Debt Management Office said. The issue mirrored last year's except that sale absorbed 500 mln euros.
Government borrowing costs have since surged across the euro zone as Greece then Ireland were forced to take debt bailouts.
"The yield is very good if one considers that interest rates have been going up throughout the year," Kalozois said.
Domestically, Cyprus raised 250 mln euros in a mid-year 52-week issue with an average annual yield of 1.70%.