Koruna Interventions Deepen Negative Yield in Czech Bond Auction
- Average accepted yield on two-year debt drops to record -0.33%
- ING sees `extremely low' funding costs while koruna cap lasts
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Investors flush with cash from the Czech central bank’s currency interventions agreed to pay a record amount to hold two-year debt, prompting the government to sell more of the notes than planned at an auction.
The Finance Ministry on Wednesday issued 11 billion koruna ($436 million) of bonds maturing in November 2017, beating its 10 billion-koruna target, as the average accepted yield fell to minus 0.33 percent from minus 0.32 percent at the last offering a month ago. Investors bought another 4.1 billion koruna of Oct. 2023 and May 2030 bonds at 0.29 percent and 0.99 percent, respectively, according to data complied by Bloomberg.