At the exchange auction between 3101 and 3106 on 14 December, the Debt Office set the bid yield for 3101 at 1.70 per cent. The buy-back yield deviated from the indicative market rates. This differed from our normal procedure.
However, our internal calculations for the decision were incorrect. The wrong CPI-month was used to determine the inflation compensation at maturity. As a consequence, the real rate that we considered reasonable in relation to nominal rates and published inflation forecasts was overestimated.
The Debt Office regrets what happened and the possible uncertainty around our perception of reasonable exchange conditions for the named inflation-linked bonds.
After having revised our calculations, we conclude that the exchange auction could have been executed in a normal fashion.
The next exchange auction is scheduled for 1 February. We will then make a new assessment of whether the auction can be based off market rates. The intended volume from 14 December will be added to the volumes in the spring.
For more information please contact:
Thomas Olofsson, Head of Funding: +46 8 - 613 47 82
Gunnar Forsling, Head of Analysis: +46 8 - 613 45 35