Preliminary initial spread guidance for reopening of 30-year Dutch State Loan set at +17.5 to +21.5 basis points
Tomorrow, 16 April 2024, the DSTA will reopen the 30-year bond, the 2.00% DSL 15 January 2054, via a Dutch Direct Auction (DDA). Today the preliminary initial spread guidance vis-à-vis the reference bond is set at +17.5 to +21.5 basis points.
The DSTA reserves the right to adjust the spread guidance before opening the book if circumstances change.
During the auction the spread guidance may also be adjusted. The spread guidance will become final no later than 15:00 CEST tomorrow.
The characteristics of this auction are:
|
Maturity date |
15 January 2054 |
|
Coupon |
2.00 % |
|
Issuance size |
€ 4 - 5 billion |
|
Reference bond |
DBR 2.50% 15 August 2054 |
|
Preliminary initial spread guidance |
+17.5 to +21.5 basis points |
|
Auction date |
Tuesday 16 April 2024, starting at 10:00 CEST |
|
Total fees PDs |
€ 17 million (incl. advisory fees) for the prior DDA of the 10-year DSL 2034 and this DDA |
The target volume of the DDA is € 4 to 5 billion. Liquidity will be guaranteed through a repo facility available to the Primary Dealers (PDs).
The book will open tomorrow at 10:00 CEST and closes at 17:00 CEST at the latest. The allocation and the cut off-spread will be announced as soon as possible after the closing of the book, and no later than 09:00 CEST on the following day. Allocation is strictly based on pre-announced rules (the DDA rules) in order to ensure a fair and fully transparent auction. The DDA is a uniform price auction. The pricing will occur at the earliest 30 minutes after allocation and no later than 12:00 CEST on the following day. The DSTA aims to determine the price on the auction date itself. Settlement takes place 2 days after pricing.
The DDA rules are available on this website and on Bloomberg (DDA <GO>).