REPEAT: MNI: Netherlands Unlikely To Sell Ultra Long In 2018

Repeats Story Initially Transmitted at 09:23 GMT Nov 9/04:23 EST Nov 9

--Netherlands Debt Official Sees Little Need Due Funding Reqts

By Nick Shamim

     BRUSSELS (MNI) - The Netherlands is unlikely to issue an ultra-dated bond

in 2018, said the Acting Head of the Cash Management, Issuance and Trading

Division at the Dutch State Treasury Agency (DSTA).  

     Speaking exclusively to Market News on the sidelines of the Association for

Financial Markets In Europe's Bond Conference, Emile Spijkerman said an

ultra-long dated bond, a bond with a maturity of 50-years and above, is unlikely

given the Netherlands' relatively limited funding needs and also because of

funding policies that it has followed to date.

     Asked what his experience in the debt market has been so far this year,

Spijkerman said "Nothing really special comes to mind to be honest," adding, "it

has been business as usual."

     "The auctions have gone very well, as can be seen for instance by the Dutch

Direct Auction (DDA) of a new 7-year DSL issue on Oct 11, where we had a book of

more than E17 billion and we allocated E6.6 billion to a wide variety of

investors," Spijkerman said.

     The DSTA launched a new 7-year DSL bond via a DDA on Oct 11 for E6.6

billion at a uniform cut-off spread of +12 basis points versus the 1.75% Feb

2024 DBR or a yield of 0.05%. The allocated amount went to a wide variety of

investors -- 55% went to 'real money' accounts and 45% to 'other' accounts. At

the cut-off spread 100% of the bids from 'real money' accounts were allocated

and 30% of the bids from 'other' accounts. 

     Spijkerman confirmed that the DSTA has sold E30 billion in bonds so far in

2017 and that there is only one bond auction remaining this year - reopening of

the 10-year benchmark 0.75% July 2024 DSL that is scheduled on Nov 14 for an

expected size range of E2 billion to E3 billion. 

     In addition, there are three remaining T-bill auctions this year that are

scheduled on Nov 20, Dec 4, Dec 11. "The target amounts for T-bill auctions will

be announced in due time", added Spijkerman.

     The first estimate for the Netherlands total funding need for 2018 is E49.6

billion, as noted in the quarterly outlook report that was released in

September. 

     "The division between capital and money market will be made public on Dec

15, when we publish our Outlook 2018," Spijkerman said.

--MNI London Bureau; tel: +44 203-586-2229; email: nick.shamim@marketnews.com