Ministry's operations 2020

Dept 20 - Debt and Financial Assets Management
Dept 20 - Debt and Financial Assets Management

Published

  • Secondary Market
  • T-Bonds
  • State Debt
Updated 31-3-2020

Ministry's operations on the secondary market

The long-term objectives for operations on the secondary market contribute to re-financing risk management and support liquidity and effectiveness of the secondary market functioning. An effective secondary market in terms of minimising transaction costs and maintaining market depth and price stability is a necessary condition for the issuing activity of the state and smooth and cost-effective funding over the long term. The Ministry of Finance has been operating actively on the secondary market, primarily through the MTS Czech Republic electronic trading platform. The MTS Czech Republic enables carrying out buy-backs, tap sales and exchanges of government bonds from the Ministry's own portfolio.

According to the Primary Dealer Agreement for Czech Government Securities and Recognized Dealer Agreement for Czech Government Securities the Ministry of Finance may execute tap sales and exchanges any trading day 10:00 a.m. – 12:00 p.m. and 2:00 p.m. – 4:00 p.m. CET when there is no auction executed. The Ministry of Finance may execute buy-backs on any trading day 10:00 a.m. – 12:00 p.m. and 2:00 p.m. – 4:00 p.m. CET.

Buy-backs, tap sales and exchanges on the secondary market occur in a transparent manner. As a matter of practice, the Ministry of Finance will inform all Primary Dealers and Recognized Dealers about the intention to conduct a transaction one business day prior to the date on which the transaction is to occur. The Primary Dealers and Recognized Dealers will be notified about:

1. the type of transaction (buy-back, tap sale or exchange),
2. the particular government bond (auctioned bond or buy back bond) ,
3. the maximum total volume of the transaction with particular government bonds,
4. the time when bid or offers from Primary dealers and Recognized Dealers can be submitted via the system,
5. the date of settlement,
6. the contact person at the Ministry.

At the time offers are accepted, the Primary Dealers and Recognized Dealers may enter into the system their prices and the volume of each buy-backs, tap sales or exchanges. Afterward, depending on the price and the volume, the Ministry will either accept or reject the offer. The Ministry may accept offers from more than one Primary Dealer or Recognized Dealer, but is not obligated to accept any Primary Dealer's or Recognized Dealer´s offer.

The Ministry of Finance may execute lending facilities on the secondary market. The lending facilities are available as repo transactions and as loans of securities. Primary Dealers and Recognized Dealers borrow the Czech Government Bonds and the Ministry of Finance borrows CZK liquidity, Czech Government Bonds, Treasury Bills or Czech National Bank Bills. Transactions may be made on trading days between 8:00 a.m. and 4:00 p.m. CET.

Reverse repo operations are the most common instrument used for the purposes of cash management of the treasury single account. Reverse repo operations are short-term collateralized investments with Czech Government Bonds, T-bills or Czech National Bank bills used as collateral.

Operations with T-Bonds on the Secondary Market

Buy - Backs
Settlement Date Issue Name ISIN Nominal Amount (CZK) Average Price Number of Counterparties

Updated:

Tap Sales
Settlement Date Issue Name ISIN Nominal Amount (CZK) Average Price Number of Counterparties
08.01.2020 CZGB 0.95/30 CZ0001004477 369 760 000 93.625 2
10.01.2020 CZGB 1.00/26 CZ0001004469 200 000 000 96.950 1
22.01.2020 CZGB 0.45/23 CZ0001004600 150 000 000 95.850 1
24.01.2020 CZGB 0.45/23 CZ0001004600 200 000 000 95.900 1
27.01.2020 CZGB 2.00/33 CZ0001005243 400 000 000 105.275 2
05.02.2020 CZGB 0.25/27 CZ0001005037 200 000 000 91.900 1
04.03.2020 CZGB 2.00/33 CZ0001005243 290 000 000 110.500 2
04.03.2020 CZGB 4.20/36 CZ0001001796 174 380 000 145.500 1
06.03.2020 CZGB 0.45/23 CZ0001004600 209 960 000 97.100 1
10.03.2020 CZGB 0.25/27 CZ0001005037 500 000 000 93.975 1
12.03.2020 CZGB 0.00/22 CZ0001005029 280 000 000 97.650 1
20.3.2020 CZGB 0,75/21 CZ0001005367 550 000 000 99,450 1
20.3.2020 CZGB 0,45/23 CZ0001004600 1 000 000 000 96,800 2
23.3.2020 CZGB 3,85/21 CZ0001002851 1 100 000 000 103,450 3
23.3.2020 CZGB 1,25/25 CZ0001005870 2 200 000 000 99,340 2
23.3.2020 CZGB 1,00/26 CZ0001004469 1 614 400 000 96,500 3
24.3.2020 CZGB 4,70/22 CZ0001001945 269 000 000 108,010 1
24.3.2020 CZGB 1,25/25 CZ0001005870 3 500 000 000 99,340 3
24.3.2020 CZGB 0,25/27 CZ0001005037 1 158 410 000 92,500 2
1.4.2020 CZGB 2,50/28 CZ0001003859 1 000 000 000 109,800 2
1.4.2020 CZGB 1,20/31 CZ0001005888 3 450 000 000 97,800 5
1.4.2020 CZGB 2,00/33 CZ0001005243 1 000 000 000 106,250 4

Updated: 30.03.2020

SWITCH AUCTIONs
Settlement Date Issuance Buy-back
Issue Name Nominal Amount (CZK) Average Price Issue Name Nominal Amount (CZK) Average Price
25.3.2020 CZGB 1.25/25 500 000 000 98,300 CZGB 3.75/20 500 000 000 100,920
25.3.2020 CZGB 1.20/31 400 000 000 94,500 CZGB 3.75/20 400 000 000 100,920
25.3.2020 CZGB 2.00/33 275 950 000 102,300 CZGB 3.75/20 275 950 000 100,920
26.3.2020 CZGB 5.70/24 1 000 000 000 117.850 CZGB 3.75/20 1 000 000 000 101.065
26.3.2020 CZGB 1.25/25 1 278 000 000 99.200 CZGB 3.75/20 1 278 000 000 101.065
31.3.2020 CZGB 1,25/25 400 000 000 99,500 CZGB 3.75/20 400 000 000 101,250
31.3.2020 CZGB 1,20/31 250 000 000 96,890 CZGB 3.75/20 250 000 000 101,250
31.3.2020 CZGB VAR/27 200 000 000 97,000 CZGB VAR/20 200 000 000 99,850
1.4.2020 CZGB 1,25/25 500 000 000 100,000 CZGB 3.75/20 500 000 000 101,250
1.4.2020 CZGB 4,20/36 200 000 000 137,750 CZGB 3.75/20 200 000 000 101,250
2.4.2020 CZGB 0,45/23 300 000 000 97,600 CZGB 3.75/20 300 000 000 101,250

Updated: 31.3.2020

LENDING FACILITY - REPO transactions
Settlement Date Expiration Date Issue Name ISIN Nominal Amount (CZK)
07.02.2020 28.02.2020 CZGB 2.00/33 CZ0001005243 1 486 000 000
07.02.2020 28.02.2020 CZGB 2.75/29 CZ0001005375 705 000 000
10.02.2020 28.02.2020 CZGB 0.75/21 CZ0001005367 300 000 000
14.02.2020 06.03.2020 CZGB 5.70/24 CZ0001002547 977 000 000
14.02.2020 06.03.2020 CZGB 1.00/26 CZ0001004469 1 480 000 000
18.02.2020 10.03.2020 CZGB 4.20/36 CZ0001001796 130 000 000
10.03.2020 14.04.2020 CZGB 4.20/36 CZ0001001796 130 000 000

Updated: 20.03.2020

1 Repo operation from investment portfolio

LENDING FACILITY - LOANS OF SECURITIES
Settlement Date Expiration Date Issue Name ISIN Nominal Amount (CZK)
07.01.2020 21.01.2020 CZGB 0.45/23 CZ0001004600 60 000 000
13.01.2020 17.01.2020 CZGB 0.45/23 CZ0001004600 70 000 000
14.01.2020 28.01.2020 CZGB VAR/27 CZ0001004105 200 000 000
14.01.2020 28.01.2020 CZGB 2.75/29 CZ0001005375 60 000 000
14.01.2020 28.01.2020 CZGB VAR/23 CZ0001003123 100 000 000
17.01.2020 18.02.2020 CZGB 0.45/23 CZ0001004600 130 000 000
28.01.2020 11.02.2020 CZGB VAR/27 CZ0001004105 30 000 000
28.01.2020 11.02.2020 CZGB VAR/23 CZ0001003123 100 000 000
31.01.2020 02.03.2020 CZGB 4.70/22 CZ0001001945 380 000 000
03.02.2020 17.02.2020 CZGB 4.85/57 CZ0001002059 25 000 000
04.02.2020 19.02.2020 CZGB 0.95/30 CZ0001004477 150 000 000
11.02.2020 14.02.2020 CZGB 0.45/23 CZ0001004600 80 000 000
11.02.2020 25.02.2020 CZGB VAR/27 CZ0001004105 25 000 000
11.02.2020 25.02.2020 CZGB VAR/23 CZ0001003123 80 000 000
11.02.2020 25.02.2020 CZGB 0.75/21 CZ0001005367 110 000 000
25.02.2020 10.03.2020 CZGB VAR/23 CZ0001003123 80 000 000
28.02.2020 13.03.2020 CZGB 2.75/29 CZ0001005375 10 000 000
10.03.2020 24.03.2020 CZGB VAR/23 CZ0001003123 50 000 000
13.3.2020 15.4.2020 CZGB 4,70/22 CZ0001001945 300 000 000
20.3.2020 18.6.2020 CZGB VAR/27 CZ0001004105 350 000 000
26.3.2020 9.4.2020 CZGB 1,25/25 CZ0001005870 100 000 000

Updated: 26.03.2020

REVERSE Repo Transactions
Settlement Date Expiration Date Issue Name ISIN Collateral

Updated: