Publications and Announcements

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Danish Government Debt Policy, Strategy 2018

The target for sales of domestic government bonds and T-bills in 2018 is kr. 65 billion and kr. 30 billion, respectively. This is unchanged from 2017. In 2018, a new index-linked bond will be opened, maturing in 2030. The focus will be on issuance in the existing 2-year and 10-year nominal bonds and in the new index-linked bond.


New primary dealer model continues in 2018

The central government's primary dealer model with enhanced requirements and payments has strengthened the market for Danish government securities. That is the background for maintaining the model with payments in 2018. The model has contributed to a more liquid market for government securities and hence to lower financing costs for the central government. Liquidity has been increased through narrower bid-ask spreads and a higher number of banks actively trading Danish government securities.


The central government will buy the bonds to finance social housing in 2018

In 2018, the central government will buy the bonds with government or municipal guarantees issued for financing of social housing. The government expects to purchase for kr. 42.5 billion in 2018.


Danish Government Debt Management Policy - Strategy announcement 2nd Half of 2017

The target for issuance of domestic government bonds in 2017 is maintained at kr. 65 billion in order to increase the outstanding volume of new bonds and ensure continuity in issuance policy. The target for T-bills at year-end is also maintained unchanged at kr. 30 billion.


New Model has Improves Liquidity in the Danish Government Securities Market

New primary dealer model is off to a good start with an improvement in liquidity. Price transparency has improved with narrower bid-ask spreads and increasing turnover in the interdealer market. All 11 primary dealers in Danish government bonds have quoted substantially tighter prices and the turnover is to a lesser degree than before concentrated on a few banks.


Opening of 0.25 per cent bullet loan 2020

On 17 May 2017, 0.25 per cent bullet loan 2020 (ISIN: DK0009923641) will be opened. The interest payment date will be 15 November and the government bond will be repaid on 15 November 2020. The new bond will replace 0.25 per cent bullet loan 2018 as key on-the-run issue. After this the central government can conduct buy-backs in 0.25 per cent bullet loan 2018.


For the first time in at least 183 years, the Danish central government has no foreign currency loans

On 20 March 2017, the Danish central government will repay its last loan in foreign currency, totalling 1.5 billion dollars. Thus – for the first time in at least 183 years – the Danish central government has no foreign currency loans.


New 10-year benchmark bond

As of 1 March 2017, the 10-year nominal on-the-run issue, 0.5 per cent bullet loan 2027, becomes the new 10-year benchmark bond. Hereafter, 1.75 per cent bullet loan 2025 will no longer have benchmark status.


Danish Government Borrowing and Debt 2016

Denmark's central government debt amounted to 23 per cent of GDP at the end of 2016. The debt thus remained low, and Denmark re-tained the highest possible credit rating with a stable outlook. The central government's financing requirement was met at record-low yields in 2016. The central government issued nominal bonds at an average yield to maturity of 0.1 per cent and an average maturity of 7 years. Demand for Danish government bonds in the auctions was high. In line with the strategy, government bonds totalling kr. 63 bil-lion were issued via auctions and tap sales. The central government played an active role in the secondary market to support liquidity in the Danish government bond market, which improved compared with 2015.


Enhanced Requirements and Payments are to strengthen the Danish Government Securities Market

From 1 April 2017, the central government is introducing payments to banks that quote prices on a current basis and act as distribution channels for Danish government bonds, i.e. function as primary dealers. Total payments will amount to a maximum of kr. 25 million p.a. The banks making the greatest efforts will receive the largest payments. At the same time, the requirements for primary dealers will be enhanced.


Opening of 0.50 per cent bullet loan 2027