MNI INTERVIEW: Finland To Issue New 10-Year Benchmark Bond

Finland will issue a new 10-year benchmark bond in 2026, the State Treasury's debt management head Anu Sammallahti told MNI, adding that forecasted borrowing needs mean that the current debt issuance strategy is expected to continue.

The Finnish bond market shows indications of good liquidity, she said in an emailed interview, with "growing turnover and stable bid-offer spreads." She observed "no immediate impact" from Fitch Ratings' downgrade of Finnish bonds from AA+ to AA this summer on their demand or price.

"A new 10-year benchmark will be issued, and the pattern overall will resemble that of previous years," she said. (See MNI INTERVIEW: Estonia Likely To Favour Longer Maturities)

DEBT BRAKE

Finland's government has announced that from 2027 it will enact a "debt brake," constraining future governments' ability to borrow. 

"Expect the broad political consensus on the importance of debt sustainability to be supportive for the market," Sammallahti said, adding that it is "a little early to say" what the impact will be as the full details of the plan are not yet known.