Netherlands Sells Bonds in Speedy Auction Day Before Elections
- Strong result is a sign of Dutch bonds’ resilience: ABN Amro
- Auction faster than usual with little sign of political risk
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Investors gave the Netherlands a vote of confidence a day ahead of general elections, snapping up government bonds in an auction that only lasted four minutes.
The Hague-based state treasury agency sold a total of 2.275 billion euros ($2.4 billion) of bonds due in January 2022, compared with a target range of 2 to 3 billion euros. The average yield was minus 0.197 percent. The proceeds will help finance borrowing estimated at about 58.7 billion euros for 2017, though that number is likely to change depending on spending agreements between the political parties that will form the new government.