The average yield to maturity of the six-month and 12-month bonds issued was 3.259 percent and 3.324 percent respectively.

The interest rate on six-month bonds issued in June last year was -0.43 percent and on 12-month bonds 0.90 percent.

The bonds were issued under a short-term bond program approved by the minister of finance in 2020. The framework provides for the possibility of repeated issuance of discounted or premium bonds with a maturity of up to 12 months, the cost of which depends on market conditions at the time of issuance.

Janno Luurmees, the head of State Treasury Department at the Ministry of Finance, has previously told ERR (link in Estonian) that the purpose of the offering is to refinance last year's issued bonds.

In March 2022, the state issued 250 million 12-month bonds with an average yield of -0.225 percent. The interest rate on six-month bonds was then -0.44 percent.

Whether there is a need to issue long-term bonds this year depends on the coalition agreement and the direction of the budget, Luurmehe said.

In June of last year, Estonia issued short-term bonds as well.

Bond offerings are created to cover the country's borrowing needs. Short-term bonds are addressed to professional investors only.

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