Czech Republic sells EUR 396mn in 2019, 2022 bonds, yields fall

By bne IntelliNews February 13, 2014

The Czech finance ministry sold CZK 10.9bn (EUR 396mn) in 2019 and 2022 government bonds at an auction on February 12, below the maximum planned amount of CZK 14bn, the central bank said.

The ministry sold CZK 7bn of the 6.8-year bonds that carry a fixed annual coupon of 1.5% and mature on October 23, 2019, up from CZK 5bn sold at the previous auction of the paper held in November 2013. This was the eleventh tranche of the issue that lured bids of CZK 9.5bn, slightly down from CZK 9.9bn at the November auction. The average yield eased to 1.461% from 1.638%.

The ministry sold CZK 3.9bn of the 15.2-year bonds that carry a fixed annual coupon of 4.7% and mature on September 12, 2022, below the CZK 6bn sold at the previous auction of the paper held in January. This was the 12th tranche of the issue that lured bids of CZK 8.4bn, down from CZK 13.9bn at the January auction. The average yield eased to 2.069% from 2.219%.

The ministry was planning to sell between CSK 3bn and CZK 7bn of each bond. 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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