Terms for switches in inflation-linked bond 3107

26 November 2015

The Swedish National Debt Office offers switches amounting to SEK 10 billion in SGB IL 3107 before the maturity of the bond falls below one year. The switches are part of the Debt Office’s market maintenance activities. The first switch auctions will take place on 4 and 7 December 2015 for a total volume of SEK 5 billion. During the first half of 2016 the Debt Office will offer further switches of 3107 for a total volume of SEK 5 billion.

In the switch auctions in December the Debt Office plans to sell the bond SGB IL 3110 (0.125%, 1 Jun 2019). The first auction will be made cash neutral[1], the second price risk neutral[2].

Switch auctions

 

Friday
4 December

Monday
7 December

SNDO sells bond

3110

3110

SNDO sells amount (SEK mn)

3 000

900

SNDO buys bond

3107

3107

SNDO buys amount (SEK mn) [3]

2 966

2 068

Time for buy-back yield

10.45

10.45

Time for auction close

11.00

11.00

Time for auction result

11.03

11.03

The switch auctions were announced in the publication Central Government Borrowing – Forecast and Analysis 2015:3 in October.

The bid yield on the buy-back bonds will be published on riksgalden.se/borrowing.at 10:45 on the day of the auction.

Bids must be placed before 11.00 a.m. on the auction day. The results will be published at around 11.03 a.m. or somewhat later. Bidding is only possible through primary dealers.

Contact

Maria Norström, Head of Funding, +46 (0)8 613 46 35
Magdalena Belin, Head of Analysis, + 46 (0)8 613 52 28


[1] The market value of the purchase and sales volumes of each bond shall be equal.

[2] The market value of the purchase and sales volumes multiplied by the modified duration of each bond shall be equal.

[3] The stated nominal volume of the buy-back loan is an approximation calculated on the basis of today’s yields.