Latvia's Economic Response to Covid-19
Domestic Market Continues to Perform Strongly
Demand in domestic market is very supportive trough challenging times, also during Covid-19 crisis.
Domestic Securities Outstanding by Original
Maturity
0.3%
8.9%
(as on December 31, 2020, %)
Government Securities Competitive Multi-Price Auctions
4.7%
250
200
23.6%
2 years bonds
150
100
5 years bonds
50
0
■7 year bonds
10 years bonds
Savings bonds
N N
للللللله
7y
TAP2026
Mar
Apr
May
June
Jul
Sep
Oct Nov
Jan
Feb
2021
2020
Source: The Treasury
62.6%
Government domestic securities outstanding by
maturity
(as on March 1, 2021, million EUR)
LV0000570182
01.07.2027.
(0%)
31.01.2025.
02.11.2023.
12.05.2023.
LV0000580058
27.10.2022.
(5.25%)
20.03.2022.
27.01.2022.
0
LV0000570141
(0.375%)
LV0000570166
(0.5%)
LV0000570158
(0.25%)
LV0000570174
(0%)
LV0000550101 (0%)
100
200
300
400
500
•
•
•
Amount sold, million EUR
Bids total, million EUR
■Bids of Eurobond TAP in Domestic Market
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.
Securities in the domestic market
Primary dealer system operates since 11 February 2013. Domestic debt securities
outstanding constituted EUR 1 612 million as of 17 February, 2021.
On 19 January 2021 Erste Group Bank AG received Latvia's primary dealer status.
The Treasury maintained regular domestic debt securities auctions in 2020 offering
medium and long term T-bonds.
For several years Latvia has concentrated domestic supply mainly in 5-year
segment and focused on increasing the liquidity. In 2020 gross issuance volumes
largely increased because of Covid -19.
A 2 year T-Bond programme was opened and taped on regular basis, with rising
demand. Currently 2 year T-Bond programme is one of the most liquid programms.
A new 7 year T-bond program was opened in the July 1, 2020. Coupon was fixed at
the 0.000%.
On 14th of October 2020 for the first time GMTN programme Eurobonds TAPS were
officered in auction in domestic market only (via Primary dealers). Currently re-
openings of outstanding Eurobonds are offered on regular basis.
Source: The Treasury
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