Uniform-Price Auctions for Swiss Government Bonds: Origin and Evolution

47 Pages Posted: 21 Mar 2016

See all articles by Angelo Ranaldo

Angelo Ranaldo

University of St. Gallen; Swiss Finance Institute

Enzo Rossi

Swiss National Bank; University of Zurich

Date Written: March 21, 2016

Abstract

The Swiss Treasury has used the sealed-bid, uniform-price auction format for allocating government bonds since 1980. In this study, we examine the authorities’ motivation for choosing the uniform-price auction. In addition, we describe how the institutional set-up evolved over time. It includes bidding requirements, class of bidders, pre-auction information, the bidding process, the determination of the cut-off price and the release of post-auction information. Finally, we provide the details of each of the 356 auctions that were held until and including 2014.

Keywords: Government Bonds, Treasury Auctions, Uniform-price Auction

JEL Classification: D44, G12, G20

Suggested Citation

Ranaldo, Angelo and Rossi, Enzo, Uniform-Price Auctions for Swiss Government Bonds: Origin and Evolution (March 21, 2016). University of St.Gallen, School of Finance Research Paper No. 2016/09, Available at SSRN: https://ssrn.com/abstract=2752407 or http://dx.doi.org/10.2139/ssrn.2752407

Angelo Ranaldo (Contact Author)

University of St. Gallen ( email )

School of Finance
Unterer Graben 21
St. Gallen, 9000
Switzerland
+41712247010 (Phone)

HOME PAGE: http://fin-sr.unisg.ch

Swiss Finance Institute ( email )

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4
Switzerland
+41796637711 (Phone)

HOME PAGE: http://www.sfi.ch/de/about-us/news/hsg-faculty-members

Enzo Rossi

Swiss National Bank ( email )

Research
Fraumuensterstr. 8
Zuerich, 8022
Switzerland

University of Zurich ( email )

Zürich
Switzerland

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