Bond yield on upward trajectory

The Cypriot 10-year bond exceeded the 5 per cent mark on Tuesday in secondary markets, resuming an upward trajectory since the three-year low recorded on June 12, the Cyprus News Agency reported on Wednesday.

The bond yield on Tuesday reached 5.044 per cent compared to a 4.68 per cent on June 12, which represented a three-year low. The spread compared with the German 10-year bond, considered as benchmark, stood at 3.80 per cent.

The yield of the 5-year bond was issued on June 18 with a 4.75 per cent coupon and a 4.85 per cent yield reached 4.875 per cent.

Cyprus` return to the markets after 2010 came 15 months after the country entered a financial adjustment programme, agreed with the European Commission, the European Central Bank and the IMF on March 2013 in return for a €10 billion bailout loan.

According to Fitch rating agency, Cyprus` return to the markets was the quickest compared to other bailed out countries. Ireland and Portugal took 20 months to return to the markets following their entry to a programme, whereas Greece took approximately four years.

 

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.