The Cypriot 10-year bond, which matures on 2020, fell at the secondary bond market at 4.948% at the end of transactions on June 5, 2014. The previous day it had closed at 5.008%. 



As a result the margin against the respective German bond with a yield of 1.402% dropped to 3.546%. 



This is the second time since 2010 that the 10-year bond falls under 5%. The first time was recorded on April 10 when the bond reached a yield of 4.98%. 



However, international market turbulence caused the yield to follow an upward trend before the European Elections, recording a yield of 5.212% on May 22. On June 14 2012, it had recorded a historic high reaching 16.46% only beginning to drop after Cyprus applied to the European Stability Mechanism for a bailout. 



The country's borrowing costs soared once again in March 2013, when an unprecedented Eurogroup decision on an uninsured deposits ‘haircut’ sparked fears of a possible default among investors. 



Positive reviews of Cyprus international lenders, collectively known as the Troika (EC, ECB, IMF) so far as well as the economy’s upgrades by international credit ratings agencies have contributed to the fall of the country’s borrowing costs.

Source: Financial Mirror