By Stelios Orphanides
The government sold a total of €75m in two-year government bonds at an auction on Monday at an average yield of 1.83 per cent, the public debt management office said.
The issue, which carried a nominal annual interest rate of 2 per cent, was 80 per cent oversubscribed, the finance ministry’s division said in an emailed statement.
It is the first time the government has issued this type of security since the public debt management office took over responsibility for the debt issue in 2012. The previous time the government issued this type of security was on July 4, 2011, more than a month after Cyprus was shut out of markets. Then, the government borrowed €668m at an interest rate of 5 per cent, according to Central Bank of Cyprus data.