The Republic of Cyprus’ government bond yields have recently shown signs of stabilisation, with the average weighted yield of July bonds reaching 3.64 per cent, compared to 3.61 per cent in the previous month.
According to the Public Debt Management Office (PDMO), during the 13-week Treasury Bill auction held on July 24, offers totalling €65.65 million were received, and all were accepted, with an average weighted yield of 3.64 per cent.
Moreover, the accepted yields ranged between 3.60 per cent and 3.74 per cent.
It is worth noting that the offers saw a slight decrease as the June issuance had received offers totalling €95.2 million nominal value.
In comparison to the beginning of the year, government bond yields have increased by 94 basis points.
What is more, since June 2022, yields have been on an upward trajectory, continuing their convergence with the corresponding European Central Bank (ECB) rate, which currently stands at 4 per cent.
Government bonds serve as short-term borrowing instruments and are a significant domestic financing tool for the Republic of Cyprus. They are typically renewed by domestic investors, mainly insurance companies and banks.
