Polish government bond sale

isaThreads: 13 Posts: 43 Joined: Oct 22, 08	Apr 9, 09, 15:33 / #
Just read about the Polish government bond sale here: http://www.wbj.pl/article-45076-government-bonds-sale-proves-a-surpris ing-success.html?type= Does anyone know any details? Price per bond, maturity date, etc. Any info would be appreciated :)

nierozumiemThreads: 13 Posts: 127 Joined: Jan 18, 08	Apr 9, 09, 21:19 / #
The finance ministry sold a total of 2.12 billion zlotys worth of its 10-year DS1019 bonds due in 2019 at a primary and later a supplementary tender. Total investor demand reached 5.26 billion, while the ministry had initially planned to sell 1.5 billion zlotys of the paper. The average yield stood at 6.224 percent, while the minimum price was 944.5 zlotys. from Forbes: http://www.forbes.com/feeds/afx/2009/04/08/afx6269649.html

isaThreads: 13 Posts: 43 Joined: Oct 22, 08	Apr 9, 09, 23:02 / #
Thanks nierozumiem! That's a pretty healthy yield, and risk-free (one hopes!).

nierozumiemThreads: 13 Posts: 127 Joined: Jan 18, 08	Apr 10, 09, 14:31 / #
isa: That's a pretty healthy yield Not much of a government bond expert, but would that yield mostly reflect the anticipated rate of inflation over the life of the bond + the calculated risk of Poland defaulting? In simple terms - Is it fair to call this a healthy yield? isa: risk-free (one hopes!). One can hope, but the strength of the USD against just about all global currencies shows just how much confidence has been lost in emergeing markets over the past 6 months.