Yield on Slovenian Bonds Drops Below 2%

The spread between the Slovenian bonds due in September 2024 and the 10-year German bunds, the eurozone benchmark, was at 1.47 percentage points.

The yield on bonds issued in Slovenia was a subject of speculations about the need for international financial aid less than two years ago, has been dropping for several months.

The speculations resulted in the yield starting to increase sharply in March 2013 and next month breaking the 7% barrier, which is considered as the point beyond which a country is not able to borrow money sustainably.

The pressure on Slovenian bonds decreased after the country rescued its banking system on its own in December 2013. The situation in the economy also started improving, with Slovenia currently recording one of the highest growth rates in Europe.