Despite the current adverse conditions on financial markets, yields on Slovak bonds in the regular monthly auction in May increased only slightly, by 0.15 percentage points (p.p.), with the spread against German bonds declining from 0.80 p.p. in March to the current 0.74 p.p., the Finance Ministry stated in response to the auction results.
On Monday (18 May), the Debt and Liquidity Management Agency (ARDAL) sold government bonds totalling €569 million, with four different bonds maturing between 2031-2047, and the average annual interest rates ranging between 3.26 percent and 4.45 percent. Total demand from investors reached €1.121 billion, significantly exceeding the volume offered.
"The lingering uncertainty on global financial markets, due in particular to the geopolitical situation in the Strait of Hormuz, has manifested itself in rising government bond yields across Europe over recent weeks," stated the Ministry.
The Finance Ministry also pointed to even bigger increases in government bond yields in several other European countries, such as Poland, with yields rising by 0.68 p.p. since April, the Czech Republic (up 0.36 p.p.), Austria (0.21), France (0.25), Belgium (0.24), Slovenia (0.24), Portugal (0.22) and Germany (0.22).
Source: TASR
