“In today’s auction, Sweden’s central bank successfully placed Riksbank Certificates worth SEK 458.3 billion at the fixed interest rate of 1.75%, aligning with the current policy rate. The offered volume stood at SEK 521 billion, but total bids reached only SEK 458.3 billion from 15 counterparties, resulting in full allotment at 100% with no proration required. This outcome reflects cautious liquidity management by Swedish banks amid ongoing economic uncertainties.”
Detailed Auction Analysis
The Sveriges Riksbank conducted its regular weekly auction of Riksbank Certificates on February 10, 2026, as part of its routine liquidity-absorbing operations. These short-term instruments, typically maturing in seven days, serve as a primary tool for the central bank to manage excess liquidity in the Swedish banking system when reserves exceed the level needed for smooth payment system functioning.
The auction results revealed a modest shortfall in demand relative to the volume offered. The Riksbank set an offered amount of SEK 521.0 billion, calibrated to match the projected lowest liquidity surplus in the banking system over the certificate’s maturity period. However, counterparties submitted bids totaling SEK 458.3 billion across 15 separate bids. Since the aggregate demand was below the offered volume, the Riksbank accepted the full bid amount of SEK 458.3 billion without any reduction or pro-rata allocation. This produced a 100.00% allotment percentage, meaning every bid was filled in full at the predetermined interest rate.
Key auction parameters and outcomes include:
Auction date : February 10, 2026
Start date (settlement) : February 11, 2026
Maturity date : February 18, 2026
Interest rate : 1.75% (fixed, corresponding to the Riksbank’s current policy rate)
Offered volume : SEK 521.0 billion
Total bid amount : SEK 458.3 billion
Accepted volume : SEK 458.3 billion
Number of bids : 15
Percentage allotted : 100.00%
This week’s auction marks a continuation of the pattern observed in recent certificate sales, where the Riksbank has consistently issued these instruments at the policy rate floor without variable rate bidding. Unlike Treasury bill auctions that may clear at varying yields, Riksbank Certificates function more as a fixed-rate liquidity drain facility. The central bank offers the volume it deems necessary to absorb surplus funds, and counterparties decide how much to invest at the posted rate.
The shortfall in bids compared to the offer—approximately SEK 62.7 billion less than proposed—suggests that some banks may be holding onto excess reserves rather than parking them in certificates, possibly due to expectations around upcoming monetary policy decisions or precautionary liquidity buffers. With the Riksbank maintaining its key interest rate at 1.75% in recent policy meetings, the certificate rate has remained anchored there, providing a predictable return for participants while helping steer short-term money market rates close to the policy target.
In the broader context of Swedish monetary operations, these weekly auctions help fine-tune liquidity conditions between larger policy adjustments. When banking system surpluses are high—as they often are in the current environment of quantitative policy legacies and stable payment flows—the Riksbank uses certificate issuance to prevent overnight rates from drifting too far below the policy rate. Full allotment at the offered rate in this instance indicates that the announced volume slightly exceeded what the market was willing or able to absorb at the prevailing terms, though the gap was not large enough to signal significant stress or dislocation.
Market participants will now monitor how liquidity evolves over the coming week as the SEK 458.3 billion in certificates matures on February 18, 2026. At that point, the funds will return to the banking system unless offset by other Riksbank operations or natural liquidity drains. The next certificate auction is expected to follow the standard Tuesday schedule, with volume likely adjusted based on updated liquidity forecasts.
Recent Trends in Riksbank Certificate Auctions
Comparing this result to prior auctions shows variability in demand but consistent full allotment at the policy rate:
In a previous auction (late January 2026), offered volume was SEK 538.0 billion with bids around SEK 470 billion, also resulting in full acceptance.
Earlier in the year, bid-to-offer ratios have fluctuated between roughly 85-95%, reflecting banks’ fluctuating appetite for locking in short-term funds at the current rate.
This week’s outcome reinforces the effectiveness of the Riksbank’s standing facility framework, where certificates act as a reliable tool for liquidity absorption without introducing volatility into short-term funding markets.
Disclaimer : This is a news report based on publicly released auction data. It is not investment advice, financial recommendation, or solicitation to buy or sell any securities.