Latvia's Economic and Financial Outlook
Domestic Market Continues to Perform Strongly
Demand is steady and average yields remain low.
Domestic Securities Outstanding by Original Maturity
15.1%
(end of the March 2019, %)
0.5% 0.5%
Domestic T-Bond Competitive Multi-Price Auctions
35
55
30
■5 years bonds
25
6.2
5.7
5.3
20
5.1
4.9 4.6
■10 years bonds
4.4
4.1
15
3.3
3.1
10
11 years bonds
5
■Savings bonds
0
6
7.4
7.2
∞
7.0
7
6
5.2
5
4
3
2
1
•
•
83.9%
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar Apr May Jun
Jul
Primary dealer system operates since 11 February 2013. Domestic debt
securities outstanding constituted EUR 1 080 million as of 3rd July 2019
2018
2019
― Bid-offer Ratio (RHS)
The Treasury maintains regular domestic debt securities auctions offering
medium term T-bonds. Long term segment is covered by international issues
For several years Latvia has concentrated domestic supply mainly in 5-year
segment and focuses on increasing the liquidity
A new 5-long T-bond program was opened at the beginning of July, 2019.
Coupon was fixed at the 0.000%. Currently amount outstanding is 20 million
EUR. In order to maintain liquidity it is expected to continue regular auctions and
gradually increase on-the-run 5-year T-bond program
Amount sold, million EUR (LHS)
T-Bills benchmarks are tap issues of original 12m T-Bills in maturity brackets from 4.5 to 9 months.
Last 5 year T-Bond auction results
On 3rd of July, Latvia had its last T-bond auction
Nominal value of 16 million EUR were sold in a competitive multi-price auction
with total demand of 83.18 million EUR (bid-offer ratio of 5.20)
In addition, 4 million EUR were sold in non-competitive (fixed price) auction
The weighted average yield rate was 0.122%
Source: The Treasury
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