Finnish government bond auction: Divergent demand for 2031 and 2036 maturities

⑴ On October 20, the Finnish Ministry of Finance auctioned two tranches of government bonds, with the 2031 maturity bond winning a total of approximately 1.01 billion euros. ⑵ The total bidding amount for the 2031 maturity bond was about 1.835 billion euros, with a bid-to-cover ratio of approximately 1.82 times and a yield of about 3.43%. ⑶ The 2036 maturity bond winning amount was approximately 478 million euros. ⑷ The total bidding amount for the 2036 maturity bond was about 1.055 billion euros, with a bid-to-cover ratio of approximately 2.21 times and a yield of about 3.83%. ⑸ Overall, the subscription multiple for the 2036 maturity bond was higher than for the 2031 bond, indicating relatively stronger demand for longer-term maturities. Yields also rose as maturities lengthened. Attention should be paid to the subsequent bond issuance schedule in Finland as well as the long-term interest rate trends.