Cypriot bonds worth €188 million had been purchased on the secondary market under its quantitative easing (QE) program by the end of October.
The ECB’s second round of Cypriot bond buying began on October 7, after the approval of the Eurogroup’s seventh evaluation, Cyprus Central Bank spokeswoman Aliki Stylianou said today. In this second round, the ECB bought additional Cypriot bonds worth €90 million, with weighted average to maturity of 5.43 years.
According to the Cyprus News Agency, government bond purchases by the ECB have helped reduce Cypriot bond yields on the secondary market, allowing the Ministry of Finance to issue its new €1 billion 10-year bond at a 4.25% interest rate.
The 10-year bond yield was at 3.96% on Tuesday, with the spread from the German 10-year bond at 339 basis points, a difference that analysts and officials attribute to Cyprus’ high percentage of non-performing loans.
The purchases of Cypriot bonds ended on November 3, since under the rules of the program they stop during the evaluation of the country’s adjustment program.
The ECB’s second round of Cypriot bond buying began on October 7, after the approval of the Eurogroup’s seventh evaluation, Cyprus Central Bank spokeswoman Aliki Stylianou said today. In this second round, the ECB bought additional Cypriot bonds worth €90 million, with weighted average to maturity of 5.43 years.
According to the Cyprus News Agency, government bond purchases by the ECB have helped reduce Cypriot bond yields on the secondary market, allowing the Ministry of Finance to issue its new €1 billion 10-year bond at a 4.25% interest rate.
The 10-year bond yield was at 3.96% on Tuesday, with the spread from the German 10-year bond at 339 basis points, a difference that analysts and officials attribute to Cyprus’ high percentage of non-performing loans.
The purchases of Cypriot bonds ended on November 3, since under the rules of the program they stop during the evaluation of the country’s adjustment program.