Czech Republic sells EUR 329mn in 2021, 2028 bonds, yields fall

By bne IntelliNews February 26, 2014

The Czech finance ministry sold CZK 9bn (EUR 329mn) in 2021 and 2028 government bonds at an auction on February 26, slightly below the maximum planned amount of CZK 10bn, the central bank said.

The ministry sold CZK 3bn of the 10.8-year bond that carries a fixed annual coupon of 3.85% and matures on September 29, 2021, down from CZK 5bn sold at the previous auction of the paper held on January 29. Investors’ demand strengthened to CZK 12.4bn from CZK 9.5bn helping cut the average annual yield to 1.912% from 1.949% in January. This was the 16th tranche of the issue.

The ministry also sold CZK 6bn of the 15.5-year bonds that mature on August 25, 2028 and carry a coupon of 2.5%, up from CZK 4bn sold at the previous auction held on January 15. This was the ninth tranche of the issue that produced an average yield of 2.938%, down from 3.087% at the January sale. Investors placed CZK 12.8bn worth of bids, compared to CZK 9.6bn in January. The ministry was planning to sell between CSK 3bn and CZK 7bn of the 2021 bonds and between CZK 2bn and CZK 6bn of the 2028 bonds.

Bonds with a maximum nominal value of CZK 50bn to CZK 60bn will be offered for sale in the first quarter of 2014.

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