Terms for switches in inflation-linked bond SGB IL 3102

23 August 2019 - Press release

The Swedish National Debt Office offers switch auctions in inflation-linked bond SGB IL 3102 with the aim of decreasing the outstanding volume to around SEK 25 billion before the bond’s time to maturity is shorter than one year. The switch auctions will be held on 20, 23 and 24 September.

The offered bonds in the switch auctions are SGB IL 3112, SGB IL 3109 and SGB IL 3113. Switches versus SGB IL 3112 and SGB IL 3113 will be price risk neutral¹  while the switch versus SGB IL 3109 will be cash neutral².

Switch auctions

 

Fri 20
September
Risk neutral

Mon 23 September
Cash neutral

Tue 24 September
Risk neutral

SNDO sells bond

 3112

3109

3113

SNDO sells amount (SEK mn)

400

250

250

SNDO buys bond

 3102

3102

3102

SNDO buys amount (SEK mn)3

1 800

200

1 400

Time for yield on buy-back   loan

10:45

10:45

10:45

Time for auction cut-off

11:00

11:00

11:00

Time for auction result

11:03

11:03

11:03

The switches were announced in the publication Central Government Borrowing – Forecast and Analysis 2019:2 in June.

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

Bids must be placed before 11:00 a.m. on the day of the auction. The results will be published at 11:03 a.m. or somewhat later. Bidding is conducted only via the Debt Office’s primary dealers.



¹ The market value of the purchase and sales volume multiplied by the modified duration of each respective bond shall be equal.

² The market value of the purchase and sales volume of each bond shall be equal.

3 The stated nominal volume of SGB IL 3102 is an approximation calculated on the basis of today’s yields.