Terms for switches to inflation-linked bond SGB IL 3116 in November
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 bond. The switch auctions will be held on November 13 and 14 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 switches will be made price risk neutral.
Switch auctions
| Details | Thu 13 Nov Risk neutral [1] | Fri 14 Nov Risk neutral [1] |
| SNDO buys bond | 3114 | 3111 |
| SNDO buys amount (SEK million) [2] | 920 | 600 |
| 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 |
| [1] The market value of the purchase and sales volume multiplied by the modified duration of each respective bond shall be equal. | ||
| [2] The stated nominal volume of the bonds 3114 and 3111 is an approximation based on today's yields. | ||
The switch auctions were announced in the publication Central Government Borrowing – Forecast and Analysis 2025:1 in May. The purpose of the switches is to build up the volume in the 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