Terms for switches in inflation-linked bond SGB IL 3110

10 November 2017

As a market commitment, the Debt Office offers switch auctions amounting to a total of approximately SEK 5 billion before SGB IL 3110 becomes shorter than one year. The switch auctions will be held on 8 and 11 December.

The offered bond in the switch auctions is SGB IL 3108. The first auction will be made price risk neutral [1] and the second cash neutral[2].

Switch auctions

 

Fri   8 December

Risk neutral

Mon 11 December

Cash neutral

SNDO sells bond

 3108

3108

SNDO sells amount (SEK mn)

770

2 330

SNDO buys bond[3]

 3110

3110

SNDO buys amount (SEK mn)

2 500

2 500

Time for yield on buy-back loan

10.45

10.45

Time for auction cut-off

11.00

11.00

Time for auction result

11.03

11.03

 

The switches were announced in the publication Central Government Borrowing – Forecast and Analysis 2017:2 in June.

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

Bids must be placed before 11:00 am on the day of the auction. The results will be published 11:03 or somewhat later. Bidding is only possible by primary dealers.

For more information, please 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 sale volume multiplied by the modified duration of each respective bond shall be equal.

[2] The market value of purchase and sale volume of each bond shall be equal.

[3] The stated nominal volume of SGB IL 3110 is an approximation calculated on the basis of today’s yields.