Ljubljana, 11 January (STA) – The yield on Slovenian ten-year bonds due in January 2021 rose 23 basis points in early trading on the MTS exchange on Friday to 4.97%. The spread on the German bonds, a benchmark, rose to 339 basis points.

The bond yield had been gradually declining since September, when it exceeded 7%, and at the start of January it dropped below 5%.

The favourable trend has been attributed to the gradual easing of the situation in the eurozone, but also to the removal of obstacles to reform in Slovenia with a landmark Constitutional Court ruling in late December.

In recent days, however, political tensions escalated in Slovenia over corruption allegations against Prime Minister Janez Janša and opposition leader Zoran Janković, which could presage a full-blown government crisis.