Today, according to plan, the Ministry of Finance sold state bonds for 13.6 billion crowns. The interest of investors exceeded the offer more than twice, they wanted to buy state bonds for 27.8 billion crowns. This follows from data from the Czech National Bank (ČNB), which organized the auction.
Investors were most interested in bonds due in 2031. They wanted to buy them for 13.8 billion crowns, while the ministry offered them to the market in the amount of 6.9 billion crowns. The average return reached 3.73 percent per year. Investors wanted to buy bonds maturing in 2035 in the amount of 11.6 billion crowns, the ministry’s offer reached 5.4 billion crowns at an average yield of 4.12 percent. The ministry sold long-term bonds due in 2044 for 1.3 billion crowns against a demand of 2.4 billion crowns and an average yield of 4.36 percent.
Last week, the Ministry of Finance sold state bonds with variable interest for 1.2 billion crowns. By the end of November, he is planning two more auctions of crown government bonds with a total volume of ten billion crowns. In addition, it will offer to the market bonds denominated in the common European currency in the amount of 500 million euros (12.65 billion crowns). “It will be the first offer of bonds denominated in euros in more than two years,” warned Komerční banka analyst Jaromír Gec.
In the first three quarters of this year, the state issued bonds with a nominal value of 254.2 billion crowns. For the fourth quarter, the Ministry of Finance plans to issue 75 billion crown bonds. But Gec assumes that the total emission in the final quarter will be higher. “We assume that bonds worth 50 to 60 billion crowns will be issued in November and December, after they were sold for 33 billion crowns in October,” he told ČTK.
The money obtained from the sale of bonds is used by the state to finance this year’s budget deficit, which is expected to reach 282 billion crowns after the amendment of the state budget, and to pay due state bonds issued in the past.
Source: www.tyden.cz
