Dutch Treasury creates permanent buy-back facility

After a successful pilot earlier this year, the DSTA has decided to add a permanent buy-back programme to its cash management instruments. The buy-back programme intends to further improve cash management by reducing surplus cash positions and redemption peaks. Therefore the facility is only applicable to DSLs that mature in the current or next year (year T or T+1). Buy-backs will not be performed through pre-announced auctions. Instead, the DSTA will determine on a day-by-day basis whether it will buy-back bonds. Buy-backs always take place via one of the Primary Dealers. DSLs bought back will be cancelled immediately thereafter. To ensure sufficient liquidity, the outstanding amount of every DSL will remain at least € 10 billion. Additionally, the DSTA’s repo facility remains available to all Primary Dealers and for all DSLs.

• Full name
  The Kingdom of the Netherlands
• Registration country
  Netherlands