Cyprus’ 10-year bond yields resumed their downward course in the past week — almost reaching 5.0 per cent — after the upward trend in the cost of borrowing registered mid May due to the turbulence in international markets.
The turmoil before the European parliament elections led to an increase in the cost of borrowing of European states but mainly those in adjustment programmes.
According to the Cyprus News Agency, the island’s 10-year bond, which matures in 2020, fell to 5.001 per cent at the end of the day Wednesday.
On April 10 the yield fell under 5.0 per cent for the first time in the past three years at least – 4.98 per cent. On May 22 it rose to 5.212 per cent.
Recent ratings upgrades and positive evaluations from the island’s international lenders contributed to the fall.
Cypriot 10-year bonds registered a record high on June 14, 2012, reaching 14.6 per cent, around 10 days before the island requested a bailout.
It started dropping after that but spiked again in March 2013 when the Eurogroup decided to seize bank deposits.