Jordan 2-year T-bond sale yield fall to 4.884 pct

The Central Bank of Jordan said on Thursday it sold 50 million dinars of debt in an auction of two-year T-bonds that saw average yields drop to 4.884 percent compared with 4.951 percent at the previous sale this month.The Central Bank of Jordan (CBJ) had invited offers for 50 million dinars ($70.5m) worth of treasury bonds on Tuesday.

The sale on Wednesday was oversubscribed with offers worth 144 million dinars, but only yields ranging from 4.940 to 4.827 per cent were accepted, the central bank said.The bonds, which are open to both local and foreign investors, mature on Aug 19, 2012.Traders say the central bank dismissed bids that exceeded five percent by several banks that saw room for higher yields.Inflationary pressures have encouraged the domestic money market to bet on higher interest rates or at least that Jordan's monetary authorities have less room for any cuts.