Bulgaria's Finance Ministry auctioned an issue of one-year government securities on December 6 - the second such aucton this year, the Ministry said in a press release Tuesday.

A weighted average annual yield of 2.35 per cent was achieved at the auction for an approved volume of 35 million leva. The results exceeded the base indicators of the previous auction of government securities in the same maturity segment, the Ministry noted.

The mission's yield declined by 45 basis points compared to the previous auction. The spread achieved is the lowest for all auctions held in 2010, considering the German benchmark Treasury bonds.

All primary dealers of government securities, as well as banks as non-primary dealers, showed keen investor interest in Monday's auction. Bids totalled nearly 156 million leva in nominal value, nearly quintupling the amount on offer. The coverage ratio reached was 4.46, higher than the previous issue of short-term government securities.

The key factors of the heightened interest in the market of government securities include the improvement of the country's fiscal position and the high liquidity in the financial sector as a whole. Parallel to these positive indicators, government securities are perceived as an investment option with an attractive yield/risk ratio.

Source: BTA