Yields of the Cyprus domestic 13-week T-bills declined for a second consecutive month in driven downwards by increased demand.

According to data released by the Finance Ministry’s Public Debt Management Office (PDMO), in yesterday’s auction for July, accepted offers amounted to pound 25 million with a weighted average yield of 3.67%.

During yesterday’s auction, total offers amounted to pound 83.1 more than 3 times larger than the announced amount, whereas accepted yields ranged from 3.65% to 3.69%, compared with 3.72% and 3.77% of the previous auction.

The Cypriot domestic T-bills yields peaked at 4.05% in the auction of last October and have been declining ever since, following the ECB’s decision to reduce its basic interest rates in June by 25 basis points with deposit rate facility amounting to 3.75%.

However, Yiannos Petri, Managing Director of Athlos Capital believes that depositors are choosing T-bills as an opportunity for higher yields as opposed to lower rates offered by banks.

‘We see deposito
rs wishing to invest money in such financial products as deposits in banks yield lower returns,’ noting that Sophic the first platform for Cypriot retail investors provides access to Cypriot T-bills.

‘Cypriot depositors feel familiarity with the Republic’s T-bills and our platform has provided more access to both retail and corporate investors who can invest in T-bills with a better return and above all more security,’ he said.

Source: Cyprus News Agency