The region raised its target of 20 million Bosnian marka ($11 mln) to plug a budget gap, with the average yield falling to -0.006 percent from 0.19 percent at the previous sale of the three-month paper in April.
Investors, mostly banks, placed bids for 51.5 million marka against 20 million.
Bosnia's central bank introduced a fee in April for banks’ surplus reserves equal to the European Central Bank's 50 percent interest rate on commercial bank deposits, which is aimed at boosting lending.
Investors, mainly banks, have since then been buying government debt as it is less costly than keeping their surplus reserves with the central bank, a finance ministry official told Reuters.
