Cyprus’ 10-year bond yields resumed their downward course — almost reaching 5.0% — after the upward trend in the cost of borrowing registered mid May 2014 due to the turbulence in international markets.
The turmoil before the European parliament elections led to an increase in the cost of borrowing of European states but mainly those in adjustment programmes.
According to the Cyprus News Agency, the island’s 10-year bond, which matures in 2020, fell to 5.001% at the end of the day Wednesday.
On April 10 the yield fell under 5.0% for the first time in the past three years at least – 4.98%. On May 22 it rose to 5.212%.
Recent ratings upgrades and positive evaluations from the island’s international lenders contributed to the fall.
Cypriot 10-year bonds registered a record high on June 14, 2012, reaching 14.6%, around 10 days before the island requested a bailout.
It started dropping after that but spiked again in March2013 when the Eurogroup decided to seize bank deposits.
Source: Cyprus Mail