Subscriptions to the issue were four times as high and included, also for the very first time in Cyprus’ history, bids bearing a negative yield, the PDMO said in a statement on its website on Tuesday. The maximum yield of bids received was 0.19% while the minimum was 0.02% in the negative area.

“There is increased liquidity in the market and there are not many other options to invest,” a source familiar with the matter commented in a telephone interview on condition of anonymity. “Banks have a lot of cash and depositing it at the central bank comes now at a cost. There is therefore a lot of competition among banks and they reduce the proposed yields”.

The previous time the government issued this type of security, on November 28, the government sold again €100m at an average yield of 0.17%.

Source: Cyprus Mail