The Czech Finance Ministry sold an issue of 10-year government eurobonds worth €750m on Monday. The yield of 2.871 percent is the lowest the Czech Republic has ever reached on foreign financial markets, ČTK quotes the Finance Minister Miroslav Kalousek. Strong interest from investors in the first tranche paved the way for the second eurobond issue, according to the ministry.
Deputy Finance Minister Jan Gregor told ČTK that the transaction will enable the Czech Republic to achieve favorable conditions for further government bond issues. “It will contribute to cutting the costs of state debt financing, and thus also lead to savings in the state budget,” he said. The average yield on a 10-year bond was 3.15 percent at the end of August, compared with 3.90 percent a year ago.
