Poland cuts yield by 20 bps on retail bonds May offer for 3-year and longer bonds
Poland's Ministry of Finance is lowering yield in its May retail bond offering for 3-year and longer papers by 20 basis points, according to information from the Ministry of Finance. The reduction is aimed at bringing the savings bond offer in line with current market conditions.
In May, the yield on 3-month to 2-year bonds remains unchanged and will be 3.00 percent for 3-month fixed-rate bonds, 5.75 percent, in the first monthly interest period for 1-year floating-rate bonds and 5.90 percent for 2-year bonds.
Yields on the remaining bonds were reduced by 20 bps: the 3-year fixed-rate bond to 5.75 percent, the 4- and 10-year inflation-indexed bonds to 6.10 and 6.35 percent, respectively, and the 6- and 12-year family bonds to 6.30 and 6.60 percent.
The margins on offer were left unchanged: 0 percent for the 1-year, 0.15 percent for the 2-year, 1.50 percent for the 4-year, 2.0 percent for the 10-year, and 2.0 percent by 2.50 percent for the 6- and 12-year bonds.
"The yield adjustment in May is intended to bring the savings bond offering in line with current market conditions. This involves a slight reduction in yields for bonds with maturities of 3 years and above," said Deputy Finance Minister Jurand Drop, quoted in the statement.
"At the same time, we have retained attractive margins in subsequent interest periods for all floating rate bonds on offer and a preference for the retail segment over the wholesale market," he added.
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