Government sells €100m in 13-weeks t-bills at almost zero yield

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By Stelios Orphanides

The finance ministry’s Public Debt Management Office said that the government sold a total of €100m in 13-week treasury bills at an average yield of 0.02 per cent, which is the lowest ever.

Subscriptions to the issue were four times as high and included, also for the very first time in Cyprus’s history, bids bearing a negative yield, the PDMO said in a statement on its website on Tuesday. The maximum yield of bids received was 0.19 per cent while the minimum was 0.02 per cent in the negative area.

“There is increased liquidity in the market and there are not many other options to invest,” a source familiar with the matter commented in a telephone interview on condition of anonymity. “Banks have a lot of cash and depositing it at the central bank comes now at a cost. There is therefore a lot of competition among banks and they reduce the proposed yields”.

The previous time the government issued this type of security, on November 28, the government sold again €100m at an average yield of 0.17 per cent.

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]

  • Douglas Murphy

    I find this hard to believe?

  • Arnt Otto Østlie

    At the same time that government looks to continued freeze in public hiring, there are ” – not many other options to invest -“. Is it really that hard for Cyprus to open new industries?

  • Barry White

    There are several billion €uros owed to the depositors and are well overdue.

    Perhaps Haris and Cyprus would like to take a stab at restoring lost reputation and paying the depositors back?

    Never be cheaper.

    • Arnt Otto Østlie

      The first creditors to be paid back I believe are the banks and EU-institutions that helped us over the initial crisis. That takes quite a few euros as well, and, as I tried to point out below, Cypriot industries need to shift into higher gear.