October 19 (SeeNews) - Yields on a 35 million lev ($26.7 million/17.9 million euro) issue of Bulgarian five-year fixed-rate Treasury notes fell on Monday to a weighted average of 3.74% from 6.23% in the previous auction as the issue was heavily oversubscribed.
Bidders offered to buy 136.9 million levs in government paper, the Bulgarian National Bank (BNB), which auctions government securities on behalf of the Finance Ministry, said in a statement.
The issue bears an annual coupon of 3.0%, payable semi-annually.
The auction produced a maximum offered yield of 3.94% and a minimum offered yield of 3.6%. The lowest accepted price was 98.9 levs per 100 levs of par value and the highest accepted price was 99.31 levs. The issue was placed at an average price of 99.14% of par.
Monday's issue was the fifth batch of a five-year T-note issue of 250 million to 350 million levs, to be offered by the Finance Ministry in the course of 2009. The fourth batch auctioned in July was almost 1.5 times oversubscrived and produced a weighted average yield of 6.23%. The third batch, auctioned in June, was slightly undersubscribed and produced a 6.87% yield. The second batch, auctioned in May, was slightly oversubscribed and produced a 5.74% yield, compared to 6.35% in the previous auction held in February. The first batch of the issue was 2.6 times oversubscribed.
(1 euro = 1.95583 Bulgarian levs)