- The Dutch State announced that it sold another tranche of its ownership in ABN AMRO and its final stake in ASR Nederland
- Both sale proceeds (totalling EUR 2.5bn), will lead to a further improvement of the government budget balance in cash terms
- The favourable development in the budget balance will most likely lead to an even lower Dutch funding requirement
- After Budget Memorandum day, the Dutch State will update the 2017 funding need and will give an initial estimate of the 2018 borrowing requirement
- We expect that the DSTA will issue EUR 31bn of bonds this year, which is at the lower end of the official EUR 30-35bn range
- For next year, we forecast a significant lower borrowing requirement, which will push net bond supply to record low negative levels
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