Bond News

Tuesday, May 23, 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 19 May, at the price of accepted bids. This time Primary Dealers did not exercise their right to purchase in RIKB 20 0205 nor RIKB 28 1115.
Total outstanding nominal value of RIKB 20 0205 after the auction is now 69,402,000,000 and for RIKB 28 1115 is now 31,117,101,519 kr. Settlement date is 24 May 2017.

Wednesday, May 17, 2017

Auction of nominal bonds RIKB 20 0205 & RIKB 28 1115

On Friday, 19 May at 11:00 am, Government Debt Management will conduct an auction of Treasury bonds.

n 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, May 17, 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 4.75%.

Read more 

Tuesday, May 09, 2017

Market Information in May 2017

 By GDM
Tuesday, May 09, 2017

Auction of Treasury bills RIKV 17 1115

On Thursday, 11 May at 11:00 a.m. Government Debt Management will conduct an auction of Treasury bills RIKV 17 1115 which mature on 15 November 2017.

Press release (pdf)
Auction terms (pdf) 

Wednesday, May 03, 2017

Auction of Treasury bonds cancelled

The Government Debt Management has decided to cancel the auction of Treasury bonds planned for 5 May 2017.

Thursday, April 27, 2017

Consumer price index in March 2017

The Consumer Price Index (CPI) based on prices in April 2017 is 442.1 points (May 1988=100), 0.50% higher than in March 2017. The CPI less housing cost is 389.2 points, unchanged from March.

Cost of owner occupied housing (imputed rent), rose by 2.6% (effect on the index 0.49%).

The CPI is 1.9% higher in April 2017 than in April 2016 while the CPI less housing cost is 1.8% lower than one year ago. 

The CPI compiled in the middle of April 2017, 442.1 points, is applicable for indexation purposes in June 2017. The old credit terms index for June 2017 is 8,729 points. 

Read more

Tuesday, April 18, 2017

Auction of Treasury bonds cancelled

The Government Debt Management has decided to cancel the auction of Treasury bonds planned for 21 April 2017.

Tuesday, April 11, 2017

Results of additional issuance 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 7 April, at the price of accepted bids. This time Primary Dealers did exercise their right to purchase in RIKB 28 1115 for 472 m.kr. Total outstanding nominal value of RIKB 28 1115 after the auction is now 28,717,101,519 kr. Settlement date is 12 April 2017.

Tuesday, April 11, 2017

Auction result of T-bills RIKV 17 1016

Friday, April 07, 2017

Auction of Treasury bills RIKV 17 1016

On Tuesday, 11 April at 11:00 a.m. Government Debt Management will conduct an auction of Treasury bills RIKV 17 1016 which mature on 16 October 2017.

Press release (pdf)
Auction terms (pdf) 

Wednesday, April 05, 2017

Auction of nominal bonds RIKB 28 1115

On Friday, 7 April at 11:00 am, Government Debt Management will conduct an auction of Treasury bonds.
In this auction nominal bonds 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, April 05, 2017

Republic of Iceland buys back 876,9 million of own bonds denominated in USD

Republic of Iceland has purchased for cancellation nominal value of 876,9 million USD in the “ICELAND 5.875%” series due in 2022 (Reg S ISIN USX34650AA31 and 144A ISIN US451029AE22; Reg S CUSIP X34650AA3 and 144A CUSIP 451029AE2) at 115.349. On March 29, the Republic of Iceland launched an invitation to holders of its bond issuance from 2012 with maturity in May 2022.  The offer expired on April 4. The issued total nominal value was 1 billion USD. The repurchase of the bonds is an element in the Treasury´s liquidity and debt management strategy. The foreign exchange reserves of the Central Bank will be reduced correspondingly, as the Treasury paid for the bonds with foreign currency deposits in the Central Bank. 

Friday, March 31, 2017

Quarterly Government Debt Management Prospect - Second quarter 2017

Second quarter 2017

  • In Q2, 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

Wednesday, March 29, 2017

Republic of Iceland offers to buy back its own debt issued in dollars.

From today the Republic of Iceland offers to buy back its 5.875% notes due 2022 issued in dollars maturing in May 2022. The Republic offers to buy any or all outstanding bonds at a fixed spread of 75bp over the reference treasury bond (UST 1.875% due February 28, 2022). The tender offer expires on April 4th, 2017 (see attachments).

Iceland 2017 Tender - Invitation for Offers.pdf
Iceland 2017 Tender - Launch Announcement.pdf 

Tuesday, March 28, 2017

Consumer price index in February 2017

The Consumer Price Index (CPI) based on prices in March 2017 is 439.9 points (May 1988=100) which is 0.07% higher than in the previous month. The CPI less housing cost is 389.2 points, 0.28% lower than in February 2017.

Prices of clothing and footwear rose by 7.9% (effect on the index 0.30%) and the cost of owner occupied housing (imputed rent) rose by 1.7% (0.28%). Products and services related to transport declined by 1.7% (-0.25%), prices of food and non-alcoholic beverages declined by 0.8% (-0.13%) and prices of furnishings and other household equipment declined by 2.7% (-0.11%).

The CPI is 1.6% higher in March 2017 than in March 2016 while the CPI less housing cost has decreased by 1.7% from one year ago.

Read more  

Friday, March 24, 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 6, amounting to 26,000 m.kr. nominal value.
5 bids were accepted for 10,000 m.kr. nominal value.
Price allocated from 99.980 to 99.990

Wednesday, March 22, 2017

Buyback of Treasury bonds RIKH 18 1009

Government Debt Management has decided not to hold an auction of Treasury bonds on Friday 24 March 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 172 b.kr., and thereby reduce the Treasury’s refinancing risk at maturity. 

The total amount of accepted bids may range up to 10,000 m.kr.  The results will be announced at the end of the buyback. 

Press release (pdf)
Terms of buyback(pdf) 

Friday, March 17, 2017

Republic of Iceland Ratings Raised To 'A/A-1' Outlook Stable

• We believe that the recent lifting of most of the remaining capital controls and
the conclusion of an agreement with the owners of offshore krona assets strengthen
Iceland's external profile.
• We are therefore raising our long- and short-term ratings on Iceland to 'A/A-1'
from 'A-/A-2'.
• The stable outlook reflects our view that the potential for improvements in
Iceland's public finances is balanced by the risk of the domestic economy
overheating over the next two years.

S&P report

Wednesday, March 15, 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 5%.

Read more 

Friday, March 10, 2017

Signing of Agreements with Primary Dealers

Today the Government Debt Management on behalf of the Treasury and primary dealers signed agreements regarding Issuance and Market Making in Treasury securities. The objective of the agreements is to maintain the Treasury’s access to financing and to enhance price formation in the secondary market for Treasury securities. 

As of 1 April 2017, four financial undertakings have been appointed as “primary dealers in Treasury securities”. They are: Arion Banki hf., Islandsbanki hf., Kvika banki hf. and Landsbankinn hf.

Press release (pdf) 
Sample of agreement (pdf) 

Thursday, March 09, 2017

Auction of Treasury bills RIKV 17 0915

On Monday, 13 March at 11:00 a.m. Government Debt Management will conduct an auction of Treasury bills RIKV 17 0915 which mature on 15 September 2017.

Press release (pdf)
Auction terms (pdf) 

Thursday, March 09, 2017

Market information in March 2017

 By GDM
Tuesday, March 07, 2017

Results of additional issuance of 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 3 March, at the price of accepted bids. This time Primary Dealers did exercise their right to purchase in RIKB 28 1115 for 88 m.kr. Total outstanding nominal value of RIKB 28 1115 after the auction is now 23,184,101,519 kr. Settlement date is 8 March 2017.

Tuesday, March 07, 2017

Agreements regarding issuance of Treasury securities in the secondary market

The Minister of Finance assigns the Government Debt Management within the Central Bank of Iceland the task of concluding agreements concerning issuance of Treasury securities and market making in the secondary market. 

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
June 29, 2009
Weekly Economic Briefing
June 22, 2009
Weekly Economic Briefing
June 15, 2009
Weekly Economic Briefing

Yield Curve

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Non-IndexedPriceYield
RIKV 17 071799.344.57%
RIKV 17 081598.964.67%
RIKV 17 111597.764.71%
RIKB 19 0226106.564.75%
RIKB 20 0205103.504.82%
RIKB 22 1026111.654.75%
RIKB 25 0612121.304.75%
RIKB 28 1115 102.164.75%
RIKB 31 0124117.314.75%
IndexedPriceYield
RIKS 21 0414104.252.63%
HFF150224102.952.89%
RIKS 30 0701111.002.27%
HFF150434111.702.35%
HFF150644118.502.31%

CPI Change

Current Value442.10
12 Months Change*1.94%
3 Months Change*5.23%
Last Month Change0.50%
Daily CPI442.10

* Annualized rates