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CZGB Auction Preview,Fixed Income: Second Eurobond auction of this year

5/17/2022 5:05 PM

Issuance activity: Tomorrow, MinFin is scheduled to auction EUR200mil of 2y euro denominated zero-coupon bonds. After first emission of these bonds in April MinFin therefore aims to reduce borrowing costs as euro bonds market offers substantially lower yields. In addition to that, the demand for Czech Eurobonds has been recently supported by the involvement of the Central Securities Depository of Czech Republic in the European clearing system operated by the central banks of the euro area countries. This subsequently allowed Czech euro bonds to be classified as eligible assets in Eurosystem credit operations. Besides the primary market auction, MinFin also increased its activity on the secondary market planning to sell the total amount of CZK1.8bn 4y 6% CZGB in the next two days (CZK4.0bn in total this week). Given the activity of MinFin on the secondary market, start-2022 retail bonds issuance and primary auctions, we believe 36,5% this year’s financing needs will have been covered already including tomorrow’s auction.

Autor: Jaromír Gec
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