In this report, we provide an overview of the funding plans announced by the local Debt Management Offices for 2018 for Denmark, Sweden and Norway.
For the eurozone countries, on 1 January 2018, we intend to publish an in-depth overview of the funding outlook for 2018.
Denmark: new 10Y linker and stable supply
The issuance target for bonds and T-bills is unchanged at DKK65bn and DKK30bn, respectively, in 2018.
Focus is on issuance in the 2Y and 10Y benchmark bonds and in the new 10Y linker that will be opened in Q1 18 - likely to be late January.
The government plans to draw DKK32.4bn on the central government's account. There will be no issuance of foreign bonds in 2018.
Sweden: QE is dead, long live QE!
At the December 2017 rate meeting, the Riksbank announced early reinvestments starting in January 2018 of bonds maturing in H1 19 (SGB1052, SGBi3110).
This comes after the SNDO slashed issuance to SEK2bn per auction (from SEK2.5bn) and reduced the T-bill stock to almost nothing (it will be SEK20bn at the end of 2018).
The Riksbank will absorb more or less all that is planned to be issued by the DO in 2018 in nominals. Net supply will, however, turn positive in linkers (SEK5.5bn) if assuming flows from SGBs will be reinvested in SGBs and the same for SGBis.
In May, a new 10Y nominal bond will be introduced (SGB1061).
Norway: stable NGB supply and new 10Y through syndication
Norges Bank plans to borrow approximately NOK50bn in government bonds in 2018. This is unchanged from 2017.
Norges Bank is due to introduce a new 10-year bond in Q2 through syndication via the primary dealers.
Norges Bank plans 16 government bond auctions for 2018, i.e. unchanged from 2017. The typical tap size is about NOK3bn.
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