By Emese Bartha
The Dutch State Treasury Agency has plans to hold four government bond, or DSL, auctions in the third quarter, it said Friday, also raising its annual bond issuance target due to higher funding needs.
Based on recent budgetary projections, the Netherlands' cash deficit is estimated at 56.4 billion euros ($67.29 billion), higher than the previous EUR52.7 billion forecast, the DSTA said, adding that the mean reason for this is the prolongation of support measures around the coronavirus pandemic.
The higher cash deficit has resulted in a similar increase in the total funding need to EUR114.8 billion, the DSTA said, raising its capital market issuance target to around EUR60 billion in 2021 from EUR55 billion before. The DSTA added that the funding need still remains surrounded by uncertainties, and the ultimate funding need could still turn out significantly lower.
The DSTA has plans to hold four bond auctions in the coming quarter, with two scheduled for July 13 and Aug. 31, and the terms of the auctions will be announced at a later date.
The DSTA also has plans to have two further auctions on Sept. 14 and Sept. 28, launching a new 2029-dated DSL at one of these days, it said, adding that it will announce the exact date after consultations with primary dealers. The targeted issue size of the new bond will be between EUR3 billion and EUR5 billion.
Write to Emese Bartha at emese.bartha@wsj.com
(END) Dow Jones Newswires
06-25-21 0743ET
