Poland’s Finance Ministry sold PLN3bn of five series of bonds on demand of PLN5.2bn, according to the results of a Thurs. action in which supply had been set for PLN bn. The ministry sold the most of five-year bonds (PS0123), offloading PLN1.4bn on demand of PLN2.4bn. The yield here rose to 2.481% from 2.322% in the auction of the same bonds the previous month, reflecting recent global market moves.
The other sales were all under PLN1bn. The ministry sold PLN865m of WS0428 bonds on demand of PLN1.5bn, yielding 3.211%, up from 3.006% in the previous auction. The ministry also sold PLN402m of floating-rate bonds due in 2024 (WZ0524), PLN323m of floating-rate bonds due in 2028 (WZ0528), and PLN22m of two-year bonds (OK0720). The two-year yield rose to 1.637% from 1.504% in the previous auction.
Overall, the sale boosted gross borrowing coverage to 59% of the PLN181.7bn target from 55% at end-April. Borrowing coverage is running slightly below the year before in terms of the total target as the comparable total for the same time of 2017 was 66%. But keeping in mind the borrowing target rose PLN13bn this year, the difference in borrowing is only about PLN4bn. Considering that gross borrowing is likely to come in below the PLN181.7bn target, actual borrowing coverage is higher.