The yields on domestic bonds issued by the Republic of Cyprus have risen in accordance with the trend in global central banks' interest rates that is being driven higher by strong inflation.
The 13-week Treasury Bills auction was held on May 22. According to a report issued this week by the Public Debt Management Office, offers totaling €25 million with a weighted average yield of 3.43 percent were accepted.
This is an increase from the 3.33 percent yield seen in the issuance from the previous month, further aligning it with the main refinancing rate of the European Central Bank, which is 3.75 percent.
Bids reached €90 million, down from €99 million in the April issuance, indicating that demand was still quite strong.
Furthermore, the Public Debt Management Office reports that the approved yields were in the 3.32 to 3.35 percent range.
The yields on Treasury Bills have increased by 73 basis points since the beginning of the year and have been moving up since June 2022.
Short-term debt instruments known as Treasury Bills are one of the Republic of Cyprus's domestic financing tools. Typically, domestic investors, primarily banks and insurance companies, renew them.
By fLEXI tEAM