Gradual increase of long-dated bonds
(Thomson Reuters ONE) -
The Government has decided on Guidelines for the central government debt
composition and maturities mainly in compliance with the proposal from the
Swedish National Debt Office. A change in the guidelines, decided by the
Government, is that the ceiling of SEK 65 billion for funding in maturities
exceeding 12 years is replaced by a benchmark of SEK 60 billion. The increase of
the stock of long-dated bonds will be made gradually.
The composition of the central government debt
* Foreign currency debt: 15 per cent
* Inflation-linked krona debt: 25 per cent
* Nominal krona debt: 60 per cent (residual)
Guidelines for the maturities of the central government debt
* Foreign currency debt: 0.125 years
* Inflation-linked krona debt: 7-10 years
* Nominal krona debt, instruments with maturities up to 12 years: 2.7-3.2
years
Up to this date, the Debt Office has concentrated funding in nominal bonds to
the 10-year segment. The new guideline for long-dated bonds leads us to revise
the funding forecast from October in order to enable larger issuance in
maturities exceeding 10 year than earlier planned. Since the borrowing
requirement is limited, we will primarily achieve this target through exchange
or buy-back auctions.
Above all we plan to raise the outstanding volume in loan 1053 that falls due in
2039. In addition, we may choose to issue in the 20-year segment by introducing
a new bond that matches the inflation-linked bond 3104 maturing in 2028
Our prerequisite is that the stock of long-dated bonds will increase in a pace
feasible to demand in order to limit the impact on market rates and funding
costs. The offered auction volumes in outright issues and exchanges will, after
a dialogue with investors and primary dealers, be based on an assessment of
demand and market conditions
Before year-end, the Debt Office will revert with further information on funding
in long-dated bonds.
The Government's guidelines and the Debt Office's proposal can be found at:
https://en.riksgalden.se/press/publications/Guidelines/
For more information, please contact
Thomas Olofsson, Head of Debt Management, +46 8 613 47 82
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Source: Riksgälden via Thomson Reuters ONE
[HUG#1563459]
Unternehmensinformation / Kurzprofil:
Datum: 14.11.2011 - 11:05 Uhr
Sprache: Deutsch
News-ID 87238
Anzahl Zeichen: 3152
contact information:
Town:
Stockholm
Kategorie:
Business News
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