MNI: Dutch Debt Agency Not 'Opportunistic' As Short End Rises

The recent rise in yields will not change the Dutch State Treasury Agency's Q2 funding plan, as it stands by its values of "transparency, consistency and liquidity," a spokesman for the agency told MNI in an emailed response to questions.

When asked about the recent rise in yields, which has been most pronounced at the short end, the agency said that "the DSTA is not an opportunistic issuer, and we aim to provide liquidity across the curve with flexible size ranges."

"The funding plan for Q2 is based on our usual core values of transparency, consistency, and liquidity with a minimum outstanding issuance program for benchmarks (2 auctions), and enough room for flexibility with off the run taps based on demand (3 auctions)," it said in emailed responses to questions.

"To closely monitor market demand, we remain in close consultation with our primary dealer network and investor base."

AVERAGE MATURITY

The DSTA plans to shorten its average maturity to 7.5 years in the coming years. (see MNI INTERVIEW: Netherlands To Issue New 5-, 10-Year Bond)

"This move is not rigid and will be a gradual process over the next years. Meanwhile, we will continue to maintain a balanced portfolio and provide liquidity across the full curve," it said.

"The average maturity is also precisely that, an average. This means that we are active across the curve."

Despite the volatile environment, the DSTA said it was "very satisfied" with its most recent tap auction for a 30-year bond on March 24. 

"The 10-year benchmark DSL July 2036 will be reopened on 12 May 2026 as part of our commitment to bring the minimum outstanding amount to at least EUR15 billion within the calendar year, and we foresee a healthy demand," it added.