Market commitment for government securities

Repos in government bonds, inflation-linked bonds and T-bills are made on request by our primary dealers, regardless of our borrowing requirement. The aim is to reduce the risk of shortages in the government securities market.

Repos

The Debt Office offers repos in government bonds to support the market. The interest rate is in proportion to the Riksbank's repo rate.

  • Repos (T/N) 40 basis points below the Riksbank's repo rate
  • Repos (O/N) 45 basis points below the Riksbank's repo rate

For government bonds and inflation-linked bonds there is no limitation in volume. For T-bills the limitation is SEK 5 billion per primary dealer, including repos T/N (tomorrow/next) and repo swaps.

Repos in newly introduced bonds

There are special terms for newly introduced government bonds of 10 basis points below the Riksbank's repo rate. These terms apply to government bonds for no more than the volume that equates to the difference between SEK 20 billion and the volume issued. The volume is evenly distributed between primary dealers.

Repo swaps

The Debt Office offers primary dealers the opportunity to exchange one bond or T-bill for another together with an agreement for a reverse transaction in the future: a repo swap. This exchange is liquidity neutral.

Repo swaps in government securities are made with a time to maturity of one week in multiples of SEK 500 million, up to SEK 2 billion for each government security and primary dealer.

  • Repo swaps (T/W) 30 basis points below the Riksbank's repo rate

Switches in inflation-linked bonds

The Debt Office offers its primary dealers the possibility to switch inflation-linked bonds. Interest rates for switches are based on current market rates, demand and a certain premium. Primary dealers may make switches corresponding to a maximum of SEK 500 million per calendar week. There are three options for the switches, price risk neutral, nominal and cash neutral. The switch facility ceases when the bond becomes shorter than one year.

The facility will be closed on the Debt Office's and the Riksbank's auction days in inflation-linked bonds.