Bulgaria approved bids for BGN 102 750 000 of BGN-denominated government bonds maturing on 27 July 2026 with 2.25% semi-annual coupon. Note that this is well below the maximum amount of BGN 200m, which was offered. The total bids amounted to BGN 156m which corresponds to a bid-to-cover ratio of 0.78. The approved portion of the issue was placed at a weighted average yield of 4.01% (+221 bps spread to the German Bunds). 90.27% of the issue was acquired by commercial banks, 3.89% - by insurance companies, 2.92% - by pension funds, 1.95% - by guarantee funds and 0.97% - by other investors. Note that the yield on GS with similar maturity has gradually increased from negative 0.15% in September 2021. In light of the deteriorating demand and worsening terms of the issues, the Ministry of Finance decided to cancel the issue calendar, released on 13 September. Instead, a flexible debt policy will be followed, taking into account the market conditions on the domestic and international markets. In a separate note, the Ministry of Finance has announced an auction on 10 October for BGN 200m of the same government securities.