Terms for switches in March to inflation-linked bond SGB IL 3116
Prenumeration
The Swedish National Debt Office offers switch auctions in the 3116 inflation-linked bond maturing on 1 June 2036, aiming to build up volume in the new bond. The switch auctions will be held on March 21 and 24 and the total volume offered is SEK 1 billion.
In the switch auctions, the Debt Office plans to buy back SGB IL 3114 0.125% 1 Jun 30 and SGB IL 3111 0.125% 1 Jun 32. The switch against SGB IL 3114 will be made cash neutral[1] whereas the switch against SGB IL 3111 will be made price risk neutral [2].
Switch auctions
| Fri 21 Mar Cash neutral | Mon 24 Mar Risk neutral | |
| SNDO buys bond | 3114 | 3111 |
| SNDO buys amount (SEK million) [3] | 420 | 580 |
| SNDO sells bond | 3116 | 3116 |
| SNDO sells amount (SEK million) | 500 | 500 |
| Time for yield on buy-back bond | 10.45 | 10.45 |
| Time for auction cut-off | 11.00 | 11.00 |
| Time for auction result | 11.03 | 11.03 |
The switch auctions were announced in the publication Central Government Borrowing – Forecast and Analysis 2024:3 in November. The purpose of the switches is to build up volume in the new bond.
The bid yield on the buy-back bond will be published at 10:45 on the day of the auction on riksgalden.se/borrowing. Bids must be placed before 11:00 through the Debt Office’s primary dealers. The results will be published at 11:03 or somewhat later.
For more information, please contact:
Johan Bergström, Head of Funding, +46 (0)8 613 45 68
Anna Olofsson, Head of Analysis, +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 the bonds 3114 and 3111 is an approximation based on today's yields.