Bulgaria Raises €150 Million in Two-Year Treasury Notes at 2.37% Yield

Bulgaria Secures €150 Million in Latest Treasury Note Auction

The Bulgarian Ministry of Finance successfully issued two-year fixed-rate Treasury notes on February 23, 2026, raising 150 million euro. The auction, which was a reopening of an existing issue, saw a weighted average annual yield of 2.37%. This issuance contributes to the nation's financial management efforts, following its recent adoption of the euro.

Strong Investor Demand Noted

The auction demonstrated significant investor confidence, with total orders placed reaching 285.8 million euro. This resulted in a robust coverage ratio of 1.91, indicating that demand for the notes was nearly double the amount offered. The Treasury notes carry an annual coupon of 2.25% and are set to mature on January 21, 2028. The reported spread over corresponding German federal bonds was 36 basis points.

Context of Recent Issuances and Euro Adoption

This latest issuance follows a similar auction in January 2026, where the Ministry of Finance also sold 150 million euro worth of the same issue of Treasury notes, but at a slightly lower weighted average annual yield of 2.33%. The successful placement of these notes comes shortly after Bulgaria officially adopted the euro as its currency on January 1, 2026, becoming the 21st member state of the eurozone.

Purpose of the Issuance

The funds raised through such government securities issuances are typically utilized for critical financial operations. These include:

• Refinancing outstanding government debt
• Financing the planned state budget deficit
• Securing the liquidity position of the fiscal reserve

This strategic approach to debt management aims to maintain financial stability and support the country's economic objectives.