Cyprus 10-year bond now below 1%

Cyprus’ 10-year government bond yield dropped to new historic low levels pushing the island’s debt servicing cost lower.

Cyprus’ 10-year bond yield in the secondary markets is trading below 1% for the first time, while yields dropped by 25 basis points in the last two days.

Cyprus joined Ireland, Spain and Portugal, whose bond yields also dropped to historic low levels.

According to market data, trading for Cyprus ten-year bond with a coupon of 2.38% that matures in 2028 closed yesterday at 0.92 per cent while a month earlier the yield was trading at 1.36 per cent.

The spread against the German 10-year bund, which is considered as the benchmark, declined to 116 basis points, while at the end of 2018 the spread between Cyprus 10-year bond and the German bund hovered around 205 basis points.

Greece’s 10-year bond yield amounted to 2.88% yesterday, Italy’s was at 2.48%, Portugal at 0.66% Spain’s at 0.60%, Ireland’s at 0.29%, France’s at 0.11%, whereas Germany 10-year bund was traded at -0.24%.

Furthermore, Cyprus 15-year bond yield maturing in 2014 dropped to 1.53% from 2% a month before with yields marking a 24 basis points in June.

Cyprus’ 30-year bond yield is trading at 2.18% compared to 2.75% which was the coupon at the day of its issuance.