The overall objective of the government debt policy is to:
- cover the central government financing requirement at the lowest possible long-term borrowing costs, while taking the degree of risk into account.
- facilitate the central government's access to financial markets in the longer term
- support a well-functioning domestic capital market
Long-term funding strategy
Danish government bonds and T-bills are regularly offered at auctions but can also be offered via syndications. This is supplemented by switch auctions and tap issuance in the secondary market.
The central government is mainly funded in kroner. Occasionally, the central government issues in foreign currency through our EMTN-programme (EUR and USD) or commercial papers (EUR or USD) to support liquidity and the FX reserve.
The issuance is aimed to be distributed evenly over the year, with a focus in the 2 and 10-year benchmark bonds supported by issuances in the 30-year segment and in inflation-linked bonds.
In addition to primary market activity, the Debt Management Office is also an active market participant in the secondary market with tap issuance and buybacks.