Ljubljana, 8 January (STA) – The trend of the falling yield on Slovenian bonds continued on Tuesday, as the ten-year bonds dropped by another 25 basis points to 4.69%. The spread over the ten-year German bunds hovers at about 3.2 percentage points, according to data from electronic exchange MTS.

In early September, the Slovenian ten-year bond yield peaked above the 7% mark with the spreads over German bunds as high as 5.64 percentage points.

The yield fell below 5% soon after the start of the new year. While part of the trend can be attributed to the calming of the situation in the eurozone, the Finance Ministry of Republic of Slovenia recently pointed to the decision of the Constitutional Court to ban referendum on legislation setting up a bad bank and a sovereign holding.

Moreover, trade unions have withdrawn their initiative for a referendum on the implementation of the 2013 budget, which they opposed because of spending cuts in the public sector.