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Terms for switches to inflation-linked bond SGB IL 3112
News 14 January 2016
The Swedish National Debt Office introduces a new inflation-linked government bond, SGB IL 3112 X% 1 Jun 26. The auction details and the coupon will be published on 4 February 2016 at 16:20.
The Debt Office will issue SEK 1 billion of SGB IL 3112 in a first auction on 11 February 2016. Thereafter switches to the new bond will be offered to quickly build up volume. The switches will be made cash neutral[1] and price risk neutral[2].
| Fri 12 Feb Cash neutral | Mon 15 feb Risk neutral | Tue 16 Feb Cash neutral | |
|---|---|---|---|
|
SNDO buys bond |
IL 3108 |
IL 3109 |
IL 3104 |
|
SNDO buys amount (SEK mn) [3] |
4 900 |
5 300 |
1 700 |
|
SNDO sells bond |
IL 3112 |
IL 3112 |
IL 3112 |
|
SNDO sells amount (SEK mn) |
5 000 |
5 000 |
3 000 |
|
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 new bond was announced in the publication Central Government Borrowing – Forecast and Analysis 2015:3 on 28 October 2015.
The bid yield on the buy-back loan will be published at 10:45 on the day of the auction on riksgalden.se/borrowing.
Bids must be placed before 11:00 on the day of the auction. The results will be published at 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 sales volume of each bond shall be equal.
[2] The market value of the purchase and sales volume multiplied by the modified duration of each respective 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.