The Czech Finance Ministry will offer 22 billion crowns ($1.10 billion) worth of state bonds in three auctions in June, the ministry said on Monday. The plan shows the government is willing to continue strong issuance after a 1.5 billion euro bond priced last week and 21 billion crowns in domestic borrowing planned for May.
The ministry will offer 7 billion crowns of a 15-year bond to be first auctioned in May, 8 billion crowns of the 5.0 percent 2019 bond, and 7 billion crowns of the three-year floating rate bond. The ministry added it would auction short-term domestic treasury bills worth 18 billion crowns in June.
The government has been raising borrowing as the state budget outlook deteriorates. The finance ministry expects the overall public sector fiscal gap to triple this year to 4.5 percent of gross domestic product. Last week, the government ventured into the eurobond market and sold a 1.5 billion, November 2014 bond at 190 basis points over mid-swaps, securing a hefty chunk of financing needs.
The government's overall 2009 domestic financing strategy, adopted at the end of the last year, called for up to 132.6 billion crowns in gross bond issues this year, which may include up to 125 billion in domestic issues. But it seems on course to overshoot the target with the strong June issuance plan.
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