Czechs sell CZK 6bn of VAR/27 bonds

PRAGUE: The Czech Finance Ministry 6.0 billion crowns ($270.49 million) worth of variable-rate government bonds due 2027 in the first, competitive round of bidding on Wednesday, meeting its planned offer.

Wednesday's auction produced an average yield of 1.890 basis points below the 6-month Prague interbank offered rate (PRIBOR) of 0.43%. The bond has a 0.27% coupon.

The ministry has set the annual coupon as an average reference interest rate minus 10 basis points, and will reset it again in May 2021.