Portrait of an Ascending Sovereign Credit
Domestic Market Continues to Perform Strongly and is reliable
Demand in domestic market is very supportive trought challanging times and grew during Covid-19 crisis.
Domestic Securities Outstanding by Original
Maturity (as on September 30, 2020, %)
Domestic T-Bond Competitive Multi-Price Auctions
0.3%
8.9%
4.7%
250
200
23.6%
2 years bonds
150
5 years bonds
100
■7 year bonds
50
0
10 years bonds
Savings bonds
5-y 5-y 5y 5y 5y 5y 5y 5y 2y 2y 2y 2y 2y 5y 2y 5y 2y 5y 2y 5y 2y 7y 5y 7y 7y 7y
Oct
Sep
June
Nov
Dec Feb Mar
Apr
May
2019
2020
IAmount sold, million EUR
Bids total, million EUR
Jul
Source: The Treasury
62.6%
Government domestic securities outstanding by
04.02.2021.
27.01.2022.
maturity
(as on September 30, 2020, millinon EUR)
LV0000580041
(6.625%)
LV0000580058
20.03.2022.
27.10.2022.
(5.25%)
12.05.2023.
02.11.2023.
31.01.2025.
01.07.2027.
0
LV0000570141
(0.375%)
LV0000570182
(0%)
100
LV0000570158
(0.25%)
LV0000570166
(0.5%)
LV0000550101 (0%)
LV0000570174
(0%)
200
300
400
500
•
Source: The Treasury | Note: Bid-to-Cover ratio: Bid Amount to State Treasury offered amount, * Since 2015 6m
T-Bills benchmarks are tap issues of original 12m T-Bills in maturity brackets from 4.5 to 9 months.
T-Bond auctions
Primary dealer system operates since 11 February 2013. Domestic debt securities
outstanding constituted EUR 1 699,3 million as of 30 September, 2020.
The Treasury maintains regular domestic debt securities auctions in 2020 offering
medium and long term T-bonds. Long term segment overall 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 7 year T-bond program was opened in the July 1, 2020. Coupon was fixed
at the 0.000%.
2 year T-Bond programme was taped on regular basis, with rising demand.
Currently 2 year T-Bond Programme is one of the most liquid programms.
On 14 October 2020, for the first time GMTN programme Eurobonds (with
maturity on 7 October 2026) were offered in auction in domestic market only. The
weighted average yield rate was fixed at negative level (-0.326%).
Source: The Treasury
31View entire presentation