Issuer: The Swedish State through the Swedish National Debt Office.

Type of debt instrument: Running promissory note. A fixed interest bond with annual payment of interest.

Maturity: Over two years from issue date. Maturities of up to 16 years have been issued.

Denomination: Lowest denomination is SEK 100 000.

Issuance: Issued through the Swedish National Debt Office issue framework via tender offers. Bids are submitted to dealers authorised by the Swedish National Debt Office, i.e. banks and securities institutions. Tenders at the highest price are accepted first and then in descending order until the issue amount is filled.

The secondary market: The liquidity of the Swedish treasury bond market is considered to be healthy. The secondary market also includes a market where trading is conducted by telephone. The participants involved in this market - banks and securities institutions - are market-makers. Since May 2001, Interbank trades, i.e. trades between two market-makers, in 2-, 5-, or 10-year government bonds are carried out in an electronic marketplace supplied by OMX Nordic Exchange Stockholm. Swedish treasury bonds can also be traded on Retail Bonds list, an electronic exchange within OMX Nordic Exchange Stockholm.

Valuations: The pricing of the instruments is stated as a real annual interest rate. The buyer does not pay the nominal amount, but pays the market price (clean price) plus any accrued interest since the last interest payment date. To calculate the dirty price (P) i.e. the price plus accrued interest, use the following equation:

P= settlement amount / dirty price (per 100 SEK nominally)
Y=yield to maturity (%)
k= number of remaining coupons
C= coupon (%)
N= nominal amount (100 SEK)
n= term to maturity (day count basis: 30E/360)


Delivery and settlement: The delivery and settlement date for treasury bonds is three banking days following the transaction date. The interest payment is received on the interest payment date into the VPC (Swedish Central Securities Depository) account in which the bonds have been registered.

Link to Swedish National Debt Office:
www.rgk.se
(Please refer to Instruments/Treasury bonds under the heading "Funding")
 

All information provided on this page shall be deemed to be general information regarding the instruments that can be traded at the exchange. For accurate rules for trade with the instruments we refer to the rules and regulations. Information on this page shall under no circumstances constitute any recommendation regarding investment decisions. The visitor shall be personally liable for the risks associated with any investment decision based on information provided on this page. Notwithstanding that the accuracy of the information provided herein has been verified, OMX Nordic Exchange Stockholm assumes no liability with respect to the accuracy or use of such information.