Ljubljana - High inflation and the prospect of monetary policy restrictions have dampened interest in state bonds in the secondary market, driving up the yield on state debt. The yield on the Slovenian 10-year bond has topped 2%.

The yield on the benchmark German bond on the MTS electronic exchange briefly reached 1% for the first time since 2015 when the eurozone was still recovering from the debt crisis in some member states. It currently trades at 0.95%.

The yield on the Slovenian bond due in March 2032 is currently at 2.16%, the highest since the 2013-14 bank repair operation after it had even slipped into negative territory on several occasions in recent years.

The spread to the benchmark German bond is at 1.21%, which is a bit higher than those of Portugal, Spain and Slovakia, but still below the spread of the Italian bond, at 1.90%.