ABN AMRO: Euro Rates Watch – Lower funding expected

by: Kim Liu , Aline Schuiling , Nico Klene

  • The Dutch care-taker government published its 2018 Budget today …
  • … which holds no new major policy initiatives
  • The strength of the Dutch economy allows a rise in government expenditure …
  • … without preventing an improvement in government finances
  • The newest projections of the government cash balance point towards another fall in the 2017 borrowing requirement and downward pressure for 2018
  • We expect the DSTA to lower its Tbill issuance and limit its bond issuance in 2017
  • For 2018, we estimate net bond supply to reach a record low level of EUR minus 14bn
Euro-Rates-Watch-Dutch-budget-special-Lower-funding-expected.pdf (336 KB)

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