Czechs sell maximum amount at first bond sale since mid-May

04 Jul, 2016

The Czech finance ministry sold 13 billion crowns ($532 million) in bonds at its first debt sale since the middle of May on Wednesday, hitting its planned maximum target. Investor demand stayed solid in the sale, dealers said, after the lull in borrowing and as the ministry plans no further auctions until August at the earliest.
The local market has also seen little impact from the aftermath of Britain's vote to leave the European Union, which has sent German yields to new lows.
Czech bonds have been relatively stable in recent months, anchored by the central bank's cap on the crown currency and lower borrowing as the state budget shows surpluses that set it on course for a lower than planned deficit this year.
The ministry sold three bonds on Wednesday, including 6 billion crowns worth of zero coupon bonds due 2019, with demand just above that figure. The average yield dipped to -0.049 percent from -0.016 percent recorded at a May 18 auction.

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