2023-11-28 12:39:21
The next State bonds, which will be issued on December 11, will have gross interest rates of 2.6% for the five-year bond and 2.9% for the 8-year bond, the Securities and Exchange Agency announced on Tuesday. Debt. They will yield 1.82% and 2.03% respectively on net.
For this issue, as always for government bonds with a maturity of several years, a withholding tax of 30% will apply.
This summer, at one year, therefore benefited from a reduced withholding tax but also a higher rate (2.81% net). The coupon depends on market rates, recalls the director of the Debt Agency, Jean Deboutte. “Since the beginning of October, we have noticed that interest rates have fallen somewhat on European markets. In addition, we find ourselves in a fairly rare phenomenon in which short-term rates are higher than long-term rates. ”
According to him, this is among other things because the financial markets still anticipate a rate cut next year. “Early estimates are for a 100 basis point cut by the end of 2024, although central banks say it won’t go that far.”
The Agency also does not expect the latest state bonds to have the same success as that of this summer (21.9 billion euros). “We are at the end of the year, our financing plan is completed,” explains Mr. Deboutte. But “the interest in this product is there at the start, we have received a lot of requests for information”.
The subscription period will run from Thursday, November 30 to Friday, December 8, via the placing institutions, and until December 7 via the General Ledgers service.
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