EN  |   | 
Contact | Sitemap | Help       Search:   .be

Kingdom of Belgium

Belgian Debt Agency
 

You are here : Products breadcrumb image Treasury Certificates breadcrumb image Auction technique

picture question markWHAT IS IT ?

The Treasury of the Kingdom of Belgium issues, in principle, twice a month on a Tuesday, Treasury Certificates at 3 and 6 or at 3 and 12 months by means of competitive bidding as well as of non-competitive subscriptions. These are submitted on the two next business days.

Auctions for Treasury Certificates are based on the interest rates offered by the bidders.

Bids must be at least EUR 10 000 000 and a multiple of EUR 1 000 000.

The Treasury sets a limit rate and accepts the bids at the yield offered by the bidders, dealing first of all with the bids whose yields are the lowest, up to the limit rate.

Allocations in response to bids submitted at the limit rate chosen by the Treasury may be proportionally scaled down. The amounts thus reduced are rounded up to the next tranche of EUR 1 000 000 with a minimum of EUR 10 000 000 per bid.

TIMELINE...

picture clocktopic D-2 : Invitation to bid
The invitation to bid is announced on the Treasury's pages before 4 pm on the Friday before the auction (D-2).

topic D : Submission of the bids and results
On the day itself (D 0), the Primary and Recognized Dealers must submit their bids between 11:00 and 11:30 AM (CET). The results of the auction are normally published a few minutes after cut-off time of the bidding process on the Treasury's pages. Settlement takes place and the securities are delivered the ordinary non-competitive subscriptions day.

topic D+2 : Ordinary non-competitive subscriptions
Participating in the ordinary non-competitive subscriptions is an exclusive right of the Primary Dealers. These subscriptions take place between 11:00 AM and 11:30 AM (CET) on the second banking day following the auction (D+2). Ordinary non-competitive subscriptions are submitted at the weighted average yield of the auction. Settlement takes place and the securities are delivered the same day.

topic Monday following D : Special non-competitive subscriptions
Participating in the special non-competitive subscriptions is also an exclusive right of the Primary Dealers. These subscriptions take place between 11:00 AM and 11:30 AM (CET) on the monday following the auction. Special non-competitive subscriptions are submitted at the weighted average yield of the auction. Settlement takes place and the securities are delivered the same day.

Market conventions : the amount to be paid is the discounted value of the accepted bids calculated on an "actual/360" basis.

Reimbursement upon maturity : The National Bank of Belgium is the paying agent through its clearing system.
 
 

Last Update : 30-08-2011
For more information, please contact :
phone number +32 (0)257 47101

© Belgian Federal Government  | Disclaimer |  Privacy