September 29 (SeeNews) - Bulgaria will auction on Wednesday an additional 30 million levs ($22.3 million/15.3 million euro) worth of 10-year treasury notes due to the high investor interest at the last auction, the country's Finance Ministry said on Tuesday.
The central bank, which auctions government papers on behalf of the ministry, sold a 30 million lev issue of 10-year T-notes on Monday as the issue was more than three times oversubscribed. The T-notes yielded an average 7.27%, down from the 7.99% yield achieved at the previous auction in July.
"The Finance Ministry considers investor interest to be a direct consequence of growing confidence in the government's policy course," the ministry said in a statement.
The share of institutional investors bidding for the issue exceeded one-third of the total bids placed in the auction, the ministry added.
The Wednesday issue will bear an annual interest rate of 4.95%, with the last coupon payment due upon maturity on January 28, 2019, the Bulgarian National Bank said in a separate statement on Tuesday.
The Wednesday issue will be the sixth batch of 10-year T-notes worth up to 350 million levs which the Finance Ministry plans to offer this year. The first issue, auctioned in January, yielded an average annual 7.21%, the second issue, sold in April, produced an annual yield of 7.11% on average and the third batch, auctioned in May, produced an average yield of 7.47% as the issue was slightly oversubscribed. The fourth batch offered in July yielded an average 7.99%.
(1 euro=1.95583 Bulgarian levs)