Auction procedure

The Debt Office sells government bonds, T-bills and inflation-linked bonds at regular auctions. We have for many years used closed multiple-price auctions (also called price-discriminative auctions).

Our policy is to make our borrowing predictable and transparent. We publish our plans for borrowing for the coming year in our tertial report entitled 'Central Government Borrowing, Forecast and Analysis'.

Details concerning issues are published one week in advance. Auctions for T-bills and government bonds take place every other Wednesday. Auctions for inflation-linked bonds take place on Thursdays according to our published auction calendar.

Bids

Bids for government bonds, inflation-linked bonds and T-bills are placed at a yield together with a nominal volume in millions of Swedish kronor.  Bids are placed electronically via Bloomberg auction system. Our primary dealers in the respective instrument are allowed to participate and place bids in the auctions.

Allocation

Allocation at auctions takes place according to the multi-price auction method; i.e. allocation at the interest rate offered. When the auction close, the bids are placed in rank order from the lowest to the highest interest rate. The bids which in terms of volume are below the auction volume published in advance receive an allocation. The bids which are on the margin and have the same interest rate as the highest accepted level are reduced in percentage terms so that the issued volume does not exceed the volume we wish to sell. 

Terms and results

Auction terms are published a week before the auction takes place at 4.20 pm on our website. Auction results for all government securities are published around three minutes after the auction closes, i.e. around 11.03 am on our website.

For technical reasons it is not possible for us to set an exact time for the publication of the results. 3 minutes is therefore our estimated average time. For exchange auctions or auctions that involve more than one government security, the delay may be slightly longer.