LJUBLJANA: Slovenia's short-term borrowing costs fell further on Tuesday when it sold 68.5 million euros of treasury bills, above the initial target of 60 million euros, the Finance Ministry said. It sold 16 million euros of 6-month bills at a yield of minus 0.07 percent versus minus 0.05 percent at the previous auction in February.
It sold 52.5 million euros of 12-month bills, also at a yield of minus 0.07 percent from minus 0.04 percent last month.
"The yields could fall further into the negative territory in the coming months, particularly if the ECB will further reduce its interest rate," Tanja Petovic from the treasury of Raiffeisen Bank told Reuters, adding the ECB policy is the main factor that influences Slovenia's T-bill yields.
Total bids at the auction amounted to 211.5 million euros. The next treasury bill auction is due on April 5 when Slovenia will sell 6-month, 12-month and 18-month bills.
Petovic said the yield for 18-month treasury bills is likely to be around zero in April although it is hard to say whether it too will go into the negative territory.
In October, when 18-month bills were issued for the last time, the yield was 0.15 percent.
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