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Terms for switches in inflation-linked bond SGB IL 3108

Terms for switches in inflation-linked bond SGB IL 3108

The Swedish National Debt Office offers switch auctions in inflation-linked bond SGB IL 3108 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 19, 22 and 23 of March.

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

  Fri 19 March

Cash neutral
Mon 22 March

Cash neutral
Tue 23 March

Risk neutral
SNDO sells bond 3109 3112 3113
SNDO sells amount (SEK mn) 1,000 1,750 500
SNDO buys bond  3108 3108 3108
SNDO buys amount (SEK mn) 3 1,100 1,900 3,100
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 2020:3 in October.

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.

For more information, please contact:
Johan Bergström, Acting Head of Funding, +46 (0)8 613 45 68
Anna Olofsson, Acting Head of Analysis and Development, +46 (0)8 613 45 98



 

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 SGB IL 3108 is an approximation calculated on the basis of today’s yields.


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