Swedish treasury bill sales lower than expected

Sweden's debt office (Riksgälden) has said the demand for treasury bills has not been not as high as first feared when it stepped in to ease market tensions.

The office said earlier this month it would sell as much as 150 billion kronor ($22.7 billion) of T-bills in extra auctions to soothe the markets as investors turned to investments seen as safer.

With two more extra auctions to go, it has sold around 70 billion kronor worth of them.

“We satisfied the markets fairly well at the beginning,” said Bo Lundgren, director-general of the debt office.

Lundgren said he expected the auctions to reach a total volume of at least around 100 million, but added: “It rather feels like we won’t need to use them (the 150 billion) all.”

The office has said the funds raised would mostly be used to add liquidity to the mortgage bond market.