Auctions under the purchase programmes
DNB uses various trading mechanisms while implementing the asset purchase programmes. Reverse auctions are part of the toolkit.
DNB conducted periodic reverse auctions while purchasing bonds issued by Bank Nederlandse Gemeenten and Nederlandse Waterschapsbank for the period 2015-2020, and for sovereign bills for the period 2020-2022.
Discontinuation weekly DTB reverse auctions per 1-7-2022
DNB has decided to discontinue the weekly DTB reverse auctions per 1 July 2022. Since the start of DTB reverse auctions during the most critical phase for markets, Q2 2020, DNB held 107 reverse auctions. Our experiences with the reverse auctions as a complementary trading mechanism have been very positive, and they have shown to facilitate price and liquidity discovery in an efficient manner. Over the past two years, DNB has purchased EUR 44 bn worth of bills after comparing EUR 140 bn worth of offers (results by auction can be found on our Bloomberg page DNLB).
The decision to discontinue the weekly reverse auctions has been taken against the background of broader developments in the implementation of monetary policy. Net purchases under the asset purchase programmes come to an end and going forward, PEPP reinvestments can be adjusted flexibly across time, asset classes and jurisdictions. Reverse auctions remain at our disposal for the future, to complement other purchase mechanisms both ad-hoc or at a fixed frequency, should we assess it suits our needs.
Publication of auction information
DNB publishes auction announcements and results through its own Bloomberg page [DNLB]. This includes details on the offered and purchased amounts. In addition, at the security level the lowest, average and highest accepted yield is published.
In case you do not have access to Bloomberg but would like to get information regarding auction results, please contact us on +31 20 520 5055.
In case of questions, please contact the Financial Markets Division via email@example.com or via phone +31 20 520 5055.