Australia |
X |
|
Look to maintain sufficient line sizes particularly in the 3yr, 5yr, 10yr and 20yr parts of the curve to support the futures contracts. |
Austria |
X |
|
A certain minimum size in the main benchmark bonds is important in order to support secondary market liquidity. |
Belgium |
X |
|
In order to create and maintain a sufficiently liquid full curve, volumes issued in all lines should reach sufficient levels. |
Canada |
X |
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Benchmark size ranges for each sector are announced in the annual Debt Management Strategy. For fiscal year 2021-22, benchmarks in core sectors will be lower in many sectors relative to fiscal year 2020-21, reflecting the decreased overall issuance in bonds. Due to much higher issuance levels in core sectors, particularly in 10-year and 30-year bonds, the benchmark bond target ranges were increased in fiscal year 2020-21 relative to fiscal year 2019-20. In pursuing much higher bond issuance and help smooth the cash flow profile of upcoming maturities, in fiscal year 2020-21 the government added a new December 1st maturity date in the 10-year sector and two new maturity dates in the 3-year bond sector, April 1st and October 1st, by promoting the 3-year bond sector to its own maturity dates (previously fungible with 5-year bonds). As of fiscal year 2021-2022, (in CAD) these benchmark size ranges were (as per Table A2.5): https://www.budget.gc.ca/2021/report-rapport/anx2-en.html 2Y: $16 Billion to $22 Billion for February, May, August, and November maturity dates 3Y: $16 Billion to $20 Billion for April and October maturity dates 5Y: $22 Billion to $26 Billion for March and September maturity dates 10Y: $38 Billion to $44 Billion for June and December maturity dates 30Y: $46 Billion to $58 Billion for December maturity dates RRB: $8 Billion to $12 Billion for December maturity dates (including inflation adjustments) |
Chile |
X |
|
The issuance policy established by the DMO consider the issuance of benchmarks, which are reopened until they reach an amount that is considered reasonable to make a bond liquid. |
Colombia |
X |
|
We believe it is important to maintain high volumes all along the yield curve not only to keep liquidity in secondary market but in order to have benchmarks in the different sections of the curves. |
Costa Rica |
X |
|
Benchmark: 3, 5 7 and 10 years. USD 160 million for CRC zero coupon bonds, USD 1.100 million for CRC fixed rate, USD 800 floating and USD 600 for indexed rate bonds. The Ministry of Finance of Costa Rica maintains volumes in certain segments or focal dates allows better price formation, which impacts the liquidity of the issues, allowing the placement of debt in better conditions. |
Czech Republic |
X |
|
Ministry of Finance tries to keep sufficient outstanding amount of T-bonds along the whole yield curve so market participants may benefit from the market liquidity. |
Denmark |
X |
|
Strategy is aimed at building up liquid benchmark series in key maturity segments. Focus on 2- and 10-year bonds, which in recent years, have been build up to a minimum of respectively around 8 USD bn. and 12 USD bn. However, volumes were higher in 2020 due to an increased financing requirement as a result of the covid-19 pandemic. |
Estonia |
|
X |
|
Finland |
X |
|
|
France |
X |
|
It is important for us to maintain large volumes on all segments of our market. Nonetheless, we are demand-driven and would lower volumes issued if demand was weak on a particular segment. Our auction system (bill auction every week, long term nominal bonds, medium term nominal bond and inflation-linked bond every month) makes it easy to issue on every segment. |
Germany |
X |
|
We perceive the traditional Bund segments of 2, 5, 10 and 30 years as well as Bills and Inflation-linked bonds to be of high importance for market participants. |
Greece |
X |
|
|
Hungary |
X |
|
We have regular and frequent benchmark auctions with maturities from 3 months up to 20 years. In 2021 we have introduced a new 30-year Green Bond, which is also auctioned regularly (quarterly). Issuing at several maturities ensures us a balanced maturity profile. Bond series are reopened several times, which helps to build up sufficiently large volumes. The targeted sizes are usually around USD 3 billion equivalent, the largest bond series are over USD 4 billion equivalent. |
Iceland |
X |
|
It’s very important to maintain liquidity in most segments on both our nominal and inflation-indexed curves, especially in 2, 5 and 10 years lines with regular issuance. A certain pre-announced minimum size in benchmark series is important to support secondary market liquidity. |
Ireland |
X |
|
It is important to maintain liquidity throughout the curve. In general, the 5yr and 10yr and increasingly the 15 and 30 year points are viewed as key maturity segments and are usually the most active. |
Israel |
X |
|
One of our primary focuses is on maintaining certain liquidity levels which support tradability, and vice versa. This is also a main goal for the primary dealership model (nonetheless, due to market conditions and structure some segments are known to be less liquid). Primary dealers (PDs) are obligated to quote bonds in both New Israeli Shekel (NIS) denominated Consumer Price Index (CPI)-linked and nominal bonds, including On-the-run bonds. Most bonds are quoted with a maximum spread of 3-4 bps, except for the 10 years On-the-run bond which is quoted with a maximum spread of 2 bps. |
Italy |
X |
|
This is a key pillar that we have in mind when define our issuance strategy. For each instrument and for each maturity we set a minimum outstanding volume to be issued before launching a new bond. Having an outstanding large enough for each bond is extremely important in order to guarantee a sufficient liquidity of the bond on the secondary market. |
Japan |
|
X |
A breakdown of the JGB market issuance by maturity is determined with market needs and trends taken into account, covering a wide range of maturities from the short term to the super long term, based on government debt management policy requirements. |
Korea |
X |
|
10 year maturity (benchmark) |
Latvia |
X |
|
Liquidity is important regardless of maturity segment and is beneficiary for both primary and secondary market. |
Lithuania |
X |
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It is important to issue regularly at the longer end – 7-12 years, to ensure liquidity of the bonds. Volumes are not particularly important as longs as the issuance is regular. |
Luxembourg |
X |
|
Liquidity is certainly important but the Luxembourg bonds lack volume in each maturity segment. |
Mexico |
X |
|
Local Market Debt On the run bonds, are fundamental for portfolio duration management and for market makers to provide enough liquidity to the secondary market. This allows the correct development for local and foreign investors. Duration management is important to give flexibility to investors due to perspectives on market conditions or to specific investment objectives. For on the run bonds new issuances, we attempt to have an outstanding value of at least 5 billion dollars. The time to reach the 5 billion dollars outstanding in the short-term bonds is a year, for middle and long term is between 2 - 3 years. External Market Debt This is an aspect to which the Federal Government gives a lot of attention regarding its foreign denominated bonds. It’s absolutely very important for bonds at specific tenors to comply with all the necessary characteristics in order to be consider as real benchmarks and size is one critical characteristic as it relates directly to liquidity (size it also a very important criteria for bonds to be included in global indexes which also enhance the instrument’s liquidity). Here I’s important to mention that bonds are consider as liquid benchmarks depending on the market where they are issued; for example, in the US dollar market Mexico’s typical benchmarks are 10 and 30 years for notional amounts of at least 2 billion while in the euro market most typical benchmarks are 7 years (a notional amount of 750 million its more than enough) and 10, 12 and even 20 years (for these tenors in euros Mexico considers at least 1 billion as the proper benchmark size). As a sovereign issuer Mexico has the responsibility to establish true benchmarks in international financial markets as this will both enhance and facilitate the price discovery process of other Mexican issuers (either from the private or public sector). |
Netherlands |
X |
|
All bonds <= 10 years (y) have a target of around 12 billion (bn). All bonds > 10 years (y) have a target of at least 10 billion (bn) |
New Zealand |
X |
|
We target quickly building volume in newly syndicated ‘benchmark’ 10y and 20y (and now 30y) lines to a minimum of circa NZ$4b, in order to promote liquidity in these lines that we see as important points on the curve for offshore investors. We have a ‘cap’ on individual nominal and inflation-indexed bond lines of NZ$18b and NZ$6b respectively. These caps are designed to balance the need for liquidity in each line against building out a full New Zealand Government Bond (NZGB) curve and mitigating refinancing risk. |
Norway |
X |
|
Norway has a policy of limiting the number of bond lines in order to build up the volume in existing lines to ensure liquidity. We issue a new 10-year bond every year in order to maintain the yield curve up to 10 years. The policy is to build the new 10-year bond up to a volume that constitutes nearly half of the borrowing requirement in each year. There is however large uncertainty about which volumes are necessary to reach satisfying liquidity in the specific segments. |
Poland |
X |
|
In order to enhance market liquidity it is important to build large issues of benchmark bonds. In case of medium- and long-term domestic fixed rate bonds the desired amount outstanding is at least PLN 25bn (about USD 6.25bn). |
Portugal |
X |
|
We believe it is important to maintain good levels of liquidity in all segments of our curve, in particular in 5y and 10y buckets. In those segments (5y and 10y), it is important to have at least an outstanding amount of USD 5 bln per bond. In steady state, we believe that the outstanding volume per bond should hover USD 10 bln. |
Slovak Republic |
X |
|
We have goals stemming from the Debt Management Strategy that require us to meet refinancing and refixing risk criteria. It is up to DMO what mix of maturities will lead to fulfilling this criteria. We have to issue what market wants and what is risk and cost efficient within the Strategy boundaries |
Slovenia |
|
X |
In the past Slovenia tended to issue “smaller” sizes of bonds in comparison to other Eurozone countries (around €1bn). For the past couple of years or so the policy has been to tap existing EUR bonds and thus increasing their original issue size up to €3bn. For the Republic of Slovenia, as a smaller issuer, is therefore liquidity wise not so necessary/important to maintain certain volumes in specific maturity segments than it is to ensure bigger issue size per bond. |
Spain |
X |
|
Given our size as a sovereign issuer, our issuance plays a key role in financial markets. In order to maintain stability, predictability, and the liquid status of our issuance, we must make sure to maintain liquidity throughout all of our main maturity segments. Specifically, we try to maintain liquidity throughout all of the main points of our yield curve. To achieve this, we use benchmark programs, trying to keep liquid benchmarks with large volumes that represent each of the main points of our yield curve, such as the 5, 10, 15, 20, 30 and 50 year points. As time goes by and these benchmarks no longer correctly represent the intended maturity segment, they are replaced with a new benchmark. |
Sweden |
X |
|
Our bonds will be classified as benchmark once they become larger than 20 BN SEK |
Switzerland |
X |
|
In our view, it is important to cover maturities of 1 to 13 years with liquid T-bonds. Additionally in the case of longer maturities, intermittent anchor points with individual bonds may complete the government yield curve. The yields on T-bonds constitute a key benchmark and therefore help to ensure an attractive and efficient Swiss capital market that functions well. As the Federal treasury finances itself exclusively via the domestic market, an efficient market is important to ensure beneficial financing conditions for the government. We are aiming for a maximum volume at maturity of around CHF 4 billion. This helps us to ensure that our relatively small debt volume (around USD 70 billion) is somewhat evenly distributed among the individual bonds. |
Turkey |
X |
|
It is important to maintain a certain amount of liquidity for 2, 5 and 10 years benchmark bonds in order to meet the different duration needs of the investors as well as to form a solid long-term yield curve that will be treated as a reference rate in bond and money markets. |
United Kingdom |
X |
|
Even though there are no specific volume targets in place, we believe that regular issuance at key benchmark maturities supports more efficient price discovery/price adjustment and, therefore, contributes to smooth functioning of the gilt market. To this end, we focus issuance of conventional (i.e. nominal) gilts particularly at the 5-, 10-, 20- and 30-year benchmark maturities with successive re-openings of relevant bonds until they reach benchmark size. The range of benchmark maturities to be supported and the volumes that are appropriate to target will vary over time according to the overall size of the debt programme and of the debt stock. For nominal gilts at present this is typically up to at least £30bn, with some lines reaching over £40bn. In the case of inflation-linked gilts, issuance takes place particularly at 10-, 20- and 30-year maturities with sizes typically built to around £15 to £20bn. Currently, the longest dated gilts are 1⅝% 2071 (nominal gilt) and 0⅛% 2068 (inflation-linked gilt), with approximately £21.6bn and £15.5bn nominal in market hands respectively. |
Total |
34 |
3 |
|