Cyprus bond yield races up on scant demand

The 10-year auction conducted by the Central Bank of Cyprus on behalf of the government drew limited interest with the bond yield racing sharply higher as prices fell.

Bond yields move adversely to prices.

During the auction held on September 26, 2007 by the Central Bank on up to CYP 30 mln or EUR 51.2 mln with a coupon of 4.5% maturing in 10 years, the total value of the bids submitted was CYP 12.970.200. The competitive bids amounted to CYP 7.325.000 and the non-competitive bids to CYP 5.645.200.  The total value of bids accepted was CYP 10.420.200.  The competitive bids accepted amounted to CYP 4.775.000 while the non-competitive bids accepted amounted to CYP 5.645.200.

The lowest and highest prices of the competitive bids accepted were CYP 98,81 and CYP 101,12 respectively for every CYP 100 nominal value of Government Registered Development Stock, representing annual yields of 4,65% and 4,36% respectively.  In accordance with the published terms of the auction, non-competitive bids amounting to CYP 5.645.200 were allotted at the weighted average price of the competitive bids accepted.  This price was CYP 99,23 per CYP 100 nominal value representing an annual yield of 4,60% compared to a price of CYP 100.50 and 4.44% yield agreed during the previous auction held on March 29.