The surge comes after the yield rose 40 basis points on the secondary market Friday ahead of the Positive Slovenia (PS) congress at which Ljubljana Mayor Zoran Janković defeated Prime Minister Alenka Bratušek, triggering a government crisis.

The spread on the German bunds has widened to 250 basis points, up from 189 basis points in early April.

While the surge indicates that financial markets are jittery about the prospects for reform and privatisation, it will have little bearing on the immediate price of borrowing.

Slovenia has already closed the long-term borrowing circle for the year by raising EUR 2bn in dual-tranche bonds on 1 April.