Bond News

Wednesday, September 20, 2017

Switch auction of nominal bonds RIKB 22 1026 & RIKB 28 1115

On Friday, 22 September at 11:00 am, Government Debt Management will conduct an auction of Treasury bonds. 

In this auction nominal bonds RIKB 28 1115 and RIKB 22 1026 will be offered. The total amount of accepted bids will be announced after the auction. 

NOTE it is only possible to purchase bonds in RIKB 22 1026 and in RIKB 28 1115 with the sale of RIKB 19 0226, which matures on 26 February 2019. Government Debt Management will purchase RIKB 19 0226 at a pre-determined price – that is, at a clean price of 104.956 (110.062164 with accrued interest per 100 nominal value) – with settlement on 27 September 2017. To clarify, this price is equivalent to 5.00% yield. The value of the bond, together with accrued interest, will constitute payment for the new issued bonds.

Press release (pdf)
Auction terms (pdf) 

Wednesday, September 13, 2017

Auction result of T-bills RIKV 18 0315

Tuesday, September 12, 2017

Results of additional issuance RIKB 20 0205 & RIKB 28 1115

As stated in paragraph 5 of Terms of Invitation to Tender for Treasury bonds, the Government Debt Management offered the equivalent of 10% of the nominal value sold in the auction 8 September, at the price of accepted bids. This time Primary Dealers did not exercise their right to purchase in RIKB 20 0205 but did exercise their right to purchase in RIKB 28 1115 in amount of 316 m.kr. Total outstanding nominal value of RIKB 20 0205 after the auction is now 74,724,000,000 and for RIKB 28 1115 is now 37,093,101,519 kr. Settlement date is 13 September 2017.

Monday, September 11, 2017

Market Information in September 2017

 By GDM
Monday, September 11, 2017

Auction of Treasury bills RIKV 18 0315

On Wednesday, 13 September at 11:00 a.m. Government Debt Management will conduct an auction of Treasury bills RIKV 18 0315 which mature on 15 March 2018.

Press release (pdf)
Auction terms (pdf) 

Wednesday, September 06, 2017

Auction of nominal bonds RIKB 20 0205 & RIKB 28 1115

On Friday, 8 September at 11:00 am, Government Debt Management will conduct an auction of Treasury bonds. 

In this auction nominal bonds RIKB 20 0205 and RIKB 28 1115 will be offered. The total amount of accepted bids will be announced after the auction.

Press release (pdf)
Auction terms (pdf) 

Wednesday, August 30, 2017

Consumer Price Index in August 2017

The Consumer Price Index (CPI) based on prices in August 2017 is 444.0 points (May 1988=100), 0.25% higher than in the previous month. The CPI less housing cost is 384.5 points, 0.18% higher than in July 2017.

Cost of international airfares decreased by 12.6% (effect on the index -0.19%). Cost of owner occupied housing (imputed rent), rose by 0.5% (0.11%).

The CPI is 1.7% higher in August 2017 than in August 2016 while the CPI less housing cost is 3.0% lower than one year ago.

The CPI compiled in the middle of August 2017, 444.0 points, is applicable for indexation purposes in October 2017. The old credit terms index for October 2017 is 8,767 points.

Read more

Wednesday, August 23, 2017

MPC decision on interest rates

The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to keep the Bank’s interest rates unchanged. The Bank’s key interest rate – the rate on seven-day term deposits – will therefore remain 4.5%.

read more

Friday, August 18, 2017

Buyback result of nominal bonds RIKH 18 1009

Today at 11:00 pm, Government Debt Management did buy back Treasury Bonds in the series RIKH 18 1009. The auction was structured as a multiple-price auction, i.e. accepted bids were according to the price submitted.

 The main results of the buyback were: 

RIKH 18 1009:

Number of bids in this series were 5, amounting to 37,200 m.kr. nominal value.

3 bids were accepted for 15,200 m.kr. nominal value.

Price allocated from 99.980 to 99.990

Wednesday, August 16, 2017

Buyback of Treasury bonds RIKH 18 1009

Government Debt Management has decided not to hold an auction of Treasury bonds on Friday 18 August 2017.  Instead Government Debt Management will offer to buy back bonds using an auction format. The Treasury offers to buy back nominal bonds in series RIKH 18 1009, which matures on 9 October 2018. The purpose of the buyback is to reduce the size of the series which is currently 139 b.kr., and thereby reduce the Treasury’s refinancing risk at maturity. 

Press release (pdf)

Terms of buyback (pdf)

Friday, August 11, 2017

Auction result of T-bills RIKV 18 0215

Wednesday, August 09, 2017

Market Information in August 2017

 By GDM
Wednesday, August 09, 2017

Auction of Treasury bills RIKV 18 0215

On Friday, 11 August at 11:00 a.m. Government Debt Management will conduct an auction of Treasury bills RIKV 18 0215 which mature on 15 February 2018.

Press release (pdf)
Auction terms (pdf) 

Thursday, July 20, 2017

Consumer Price index in July 2017

The Consumer Price Index (CPI) based on prices in July 2017 is 442.9 points (May 1988=100), 0.02% lower than previous month. The CPI less housing cost is 383.8 points, 0.57% lower than in June 2017.

Prices of clothing and footwear decreased by 11.0% (effect on the index -0.41%). Cost of owner occupied housing (imputed rent), rose by 1.7% (0.34%) and international airfares rose by 20.3% (0.25%).

The CPI is 1.8% higher in July 2017 than in July 2016 while the CPI less housing cost is 3.1% lower than one year ago.

Read more

Thursday, July 13, 2017

Auction result of T-bills RIKV 18 0115

Tuesday, July 11, 2017

Auction of Treasury bills RIKV 18 0115

On Thursday, 13 July at 11:00 a.m. Government Debt Management will conduct an auction of Treasury bills RIKV 18 0115 which mature on 15 January 2018.

Press release (pdf)
Auction terms (pdf) 

Monday, July 10, 2017

Market Information in June 2017

 By GDM
Friday, July 07, 2017

Fitch upgrades Iceland to ‘A-’; outlook is positive

Fitch Ratings announced today that it had upgraded Iceland‘s long-term foreign and local-currency Issuer Default Ratings (IDRs) to ‘A-’ from ‘BBB+’. The outlook is positive. The main rating drivers are reduced external vulnerability and improvements in government debt ratios, supported by robust growth.

Report

Wednesday, July 05, 2017

Switch auction of nominal bonds RIKB 28 1115 & RIKB 20 0205

On Friday, 7 July at 11:00 am, Government Debt Management will conduct an auction of Treasury bonds. 

In this auction nominal bonds RIKB 28 1115 and RIKB 20 0205 will be offered. The total amount of accepted bids will be announced after the auction.

 NOTE it is only possible to purchase bonds in RIKB 28 1115 and in RIKB 20 0205 with the sale of RIKB 19 0226, which matures on 26 February 2019. Government Debt Management will purchase RIKB 19 0226 at a pre-determined price – that is, at a clean price of 106.300 (109.560274 with accrued interest per 100 nominal value) – with settlement on 12 July 2017. To clarify, this price is equivalent to 4.61% yield. The value of the bond, together with accrued interest, will constitute payment for the new issued bonds.

Press release (pdf)
Auction terms (pdf) 

Friday, June 30, 2017

S&P‘s today affirmed Iceland‘s Sovereign ratings at A/A-1 with a stable outlook

In accordance with its publication schedule, on June 30 2017, S&P Global Ratings affirmed its 'A/A-1' long- and short-term foreign and local currency sovereign credit ratings on the Republic of Iceland. The stable outlook balances the potential for improvements in Iceland‘s fiscal position against risks of the economy overheating during the next two years.

S&P report

Friday, June 30, 2017

Quarterly Government Debt Management Prospect - third quarter 2017

Third quarter 2017

  • In Q3, benchmark Treasury bonds will be offered for sale in the amount of 5-10 b.kr. market value.1
  • It is also planned to issue Treasury bonds in the following series: RIKB 20 0205 and RIKB 28 1115.


1 The sale price or market value refers to the clean price, net of accrued interest. 

Full report

Thursday, June 29, 2017

Consumer Price index in June 2017

The Consumer Price Index (CPI) based on prices in June 2017 is 443.0 points (May 1988=100), the same as it was in May 2017. The CPI less housing cost is 386.0 points, 0.41% lower than in May 2017.

The CPI is 1.5% higher in June 2017 than in June 2016 while the CPI less housing cost is 3.1% lower than one year ago.

The CPI compiled in the middle of June 2017, 443.0 points, is applicable for indexation purposes in August 2017. The old credit terms index for August 2017 is 8,747 points.

Read more

Wednesday, June 21, 2017

Auction of Treasury bonds cancelled

The Government Debt Management has decided to cancel the auction of Treasury bonds planned for 23 June 2017.

Wednesday, June 14, 2017

MPC decision on interest rates - lowered

The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to lower the Bank’s interest rates by 0.25 percentage points. The Bank’s key interest rate – the rate on seven-day term deposits – will therefore be 4.5%.

read more

Friday, June 09, 2017

Market Information in June 2017

 By GDM
Friday, June 09, 2017

Auction of Treasury bills RIKV 17 1215

On Tuesday, 13 June at 11:00 a.m. Government Debt Management will conduct an auction of Treasury bills RIKV 17 1215 which mature on 15 December 2017.
Press release (pdf)
Auction terms (pdf) 

Friday, June 09, 2017

Buyback result of nominal bonds RIKH 18 1009

Today at 11:00 pm, Government Debt Management did buy back Treasury Bonds in the series RIKH 18 1009. The auction was structured as a multiple-price auction, i.e. accepted bids were according to the price submitted. 

The main results of the auction were: 

RIKH 18 1009:
Number of bids in this series were 7, amounting to 27,130 m.kr. nominal value.
6 bids were accepted for 15,000 m.kr. nominal value. (2 bids allocated in full, 4 bids partly)
Price allocated from 99.980 to 99.990

February 08, 2017
MPC decision on interest rates
January 24, 2017
Exchange auction results
January 17, 2017
Exchange auction results
December 14, 2016
MPC decision on interest rates
December 09, 2015
MPC decision on interest rates
November 04, 2015
MPC decision on interest rates
September 30, 2015
MPC decision on interest rates
February 04, 2015
MPC decision on interest rates
December 10, 2014
MPC decision on interest rates
November 05, 2014
MPC decision on interest rates
August 28, 2014
Temporary exemption revoked
December 11, 2013
MPC decision on interest rates
November 06, 2013
MPC decision on interest rates
February 06, 2013
MPC decision on interest rates
December 13, 2012
Sale of Government bonds
December 12, 2012
MPC decision on interest rates
September 07, 2012
AUCTION RESULT OF NOMINAL BONDS
April 29, 2011
Signing of Agreements
December 29, 2010
Annual prospect 2011
May 14, 2010
Signing of Agreements
February 23, 2010
Exchange auction results
February 11, 2010
Auction result RIKV 10 0615
January 13, 2010
Auction Result RIKV 10 0517
December 10, 2009
Result - Sale of T-Notes

Yield Curve

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Non-IndexedPriceYield
RIKV 17 111599.324.48%
RIKV 17 1215 98.944.56%
RIKV 18 011598.544.60%
RIKV 18 0215 98.164.60%
RIKV 18 0315 0.000.00%
RIKB 19 0226105.104.94%
RIKB 20 0205102.185.24%
RIKB 22 1026108.305.34%
RIKB 25 0612115.755.44%
RIKB 28 1115 95.705.52%
RIKB 31 0124108.805.54%
IndexedPriceYield
RIKS 21 0414104.982.32%
HFF150224104.222.49%
RIKS 30 0701112.602.11%
HFF150434112.302.24%
HFF150644120.302.17%

CPI Change

Current Value444.00
12 Months Change*1.74%
3 Months Change*0.91%
Last Month Change0.25%
Daily CPI444.00

* Annualized rates