Finland’s 10-year bond yields rose the most in more than two months in Helsinki after the Treasury opened books to sell 4 billion euros ($5.2 billion) in euro- denominated bonds maturing in 2023.
The yield on Finland’s 1.625 percent bond maturing in 2022 jumped 5.5 basis points to 1.478 percent at 2:07 p.m. local time, the most since Jan. 28, when it rose by 7 basis points. One basis point is 0.01 percentage point.
Finland’s new bond may be priced today about 2 basis points below the mid-swap rate, according to a person familiar with the matter who asked not to be identified on account of not being authorized to speak about it. The yield on Germany’s 1.5 percent bond maturing in 2023 rose 3.5 basis points to 1.272 percent.
Finland is raising about 7.5 billion euros this year to plug a budget gap seen by the Finance Ministry at 2.3 percent of gross domestic product. The deficit will narrow to 1.7 percent next year, the ministry said on March 27.
The Treasury mandated Barclays Plc, Credit Agricole SA, HSBC Holdings Plc, Nordea Bank AB and Royal Bank of Scotland Group Plc to manage the issue.
Finland is the only euro member with a stable AAA rating at Standard & Poor’s, Moody’s Investors Service and Fitch Ratings. While Germany, the Netherlands and Luxembourg also have the top rating, they all have a negative outlook with at least one rating company.
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