2- and 5-year bond yields turn higher

T-bill yield continues down

The bond market sell-off witnessed in major international markets has finally caught up with Cyprus, since during the multiple 2- and 5-year bond auctions, yields raced higher, the first such move in over a year.

Most analysts described the move as directly related to expectations that the European Central Bank will lift euro rates higher during 2006. By narrowing the differential between euro and Cyprus rates, it would reduce the scope for the Central Bank of Cyprus to orchestrate further rate cuts at home.

FOR FULL REPORT SEE April 5 print edition or Visit www.financialmirror.com -> Research Centre ->Cyprus Economy ->Interest rates, TBills, Yields.