Emerging Europe roundup

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Emerging Europe roundup

Slovak Finance Ministry rejects bids in bond auction

The Debt and Liquidity Management Agency rejected all bids in the latest tender for government bonds with an eight-year maturity, market dealers informed. The volume of the bids was 2.7 billion Slovak Koruna's. with suggested yearly yields in the 3.28% to 4% range. The Agency did not reveal its reasons for turning down the bids of the commercial banks but it is likely that it considered the yields too high. Moreover, the state budget at present has low borrowing requirement after the massive 12.1 billion Slovak Koruna surplus, realized in the first month of the year. Last year the Agency cancelled all government bonds auctions in four consecutive months due to the positive budget execution.

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