Transcript: Interview with Dutch State Treasury Agency’s Saskia van Dun on 11 December 2025
12 December 2025
By Marta Vilar – MADRID (Econostream) – Following is the full transcript of the interview conducted by Econostream on 11 December 2025 with Saskia Van Dun, Agent of the Dutch State Treasury Agency:
Q: A few weeks ago, you reopened the DSL January 2056 bond. How did that go?
A: That went very well, as did the initial issuance. We set a fair price, and given our AAA status, the bond performed strongly. Even though it was a 30-year reopening, it went very well.
Q: In your 2026 Outlook, you note that a significant upward revision of the overall borrowing requirement could lead to an increase in the capital market issuance target, currently set at €50 billion. How likely is a significant upward revision?
A: We have set the call on the capital market at €50 billion and are committed to this number. That’s our starting point. If there are changes to the funding need, we use the money market as a buffer. Only if there were really significant increases in funding needs might we consider raising the call on the capital markets. We see this only as a last resort because in general, we want to stick to the €50 billion. We have also set the funding need, including the cash deficit, at a level that doesn’t suggest many changes. But never say never—you never know what could happen during the year. For example, if we had a shock like Covid, things could change. But in general, we expect to stick to the €50 billion.
Q: How large would the increase in the overall borrowing requirement need to be in order to trigger a higher call in the capital market?
A: We don’t have a specific number. We can’t expand the money market buffer indefinitely, so we always look for balance. That’s why we say the money market is our buffer, giving us enough flexibility. I don't want to put a number on it. We will see what happens during the year.
Q: You plan to issue a new 10-year DSL maturing in 2036. How likely is it that this transaction will take place in January?
A: It will take place in Q1, the exact date has yet to be determined.
Q: You also stated that this bond will be reopened until it reaches a minimum outstanding volume of €15 billion. Can you provide any guidance on the anticipated timing and size of these reopenings?
A: We commit to a minimum size of €15 billion, which must be reached by the end of the calendar year or within 12 months. If the original issuance is €6–7 billion, then you can calculate how much additional volume will be needed.
Q: You also intend to launch a new benchmark bond with a maturity over 10 years. How far out on the curve are you willing to go?
A: Our longest bond is the 30-year. So, it could be anything between slightly above 10 years and 30 years. We just don’t know yet which maturity it will have.
Q: You haven’t narrowed that range yet.
A: Not yet. But we want to reduce our average maturity from 8 to 7.5 years. To achieve this, we need to adjust issuance. If we issue a very long bond, we wouldn’t get there. We don’t need to reach the target immediately; it can be gradual. But we will take it into account when determining the maturity of this bond.
Q: You still have €14 billion in DSL issuance planned for maturities yet to be determined. Which maturities are you currently considering, and are there any segments of the curve you are excluding?
A: It can be across the entire curve. We look at market demand and of course at our maturity profile. This gives us a bit more flexibility in our funding strategy. About a week before each issuance, we determine what we will do, and we consult the market and our primary dealers to help set the right maturity.
Q: To what extent will the choice of maturities be influenced by the factors behind your decision to reduce the minimum target average maturity from 8 to 7.5 years, such as higher term premia and higher overall interest rates?
A: It does have an influence. These developments affected our decision to set the minimum target at 7.5 years. So that is our framework, together with our 12-month refixing amount. And within that framework we set the maturities throughout the year for the DSLs.
Q: You also mention that this amount (€14 billion) could be raised by reopening existing DSLs, including both green bonds. Under what conditions would you consider reopening one of the green bonds?
A: For us, a green bond is largely a regular bond, and we want to keep it liquid. We have two green bonds in the market, the 2040 and the 2044. There is an evaluation of our green bond program underway, to be published next year. Based on the outcome, we will decide whether to reopen one of the existing bonds or issue a new one in the upcoming years. We don’t know the exact year. I could imagine that a green bond could be one of our “to-be-determined” DSLs, and if we issue a new one, it would be in one of the following years.
Q: Is a very long maturity—meaning 30 years—unlikely to be chosen for the funding of these €14 billion, given that you are trying to reduce your minimum target average maturity?
A: Our funding strategy states that we intend to issue a 30-year bond every five years. We issued one this year, so it will be another five years before the next. Reducing the minimum target average maturity to 7.5 years will influence our issuance strategy. For example, we are going to issue a 5-year bond in January. We want to reduce average maturity over time, and for that we need to issue shorter maturities. We also currently don’t have a 5-year point.
Q: Is the issuance of a new green bond at all under consideration for 2026?
A: It is still to be decided based on the evaluation results, which will be announced sometime in 2026. It seems too early to decide on issuing a new green bond next year.
Q: With the Dutch pension reform taking effect on 1 January 2026 and the pace of transitions still uncertain, how is the DSTA assessing potential impacts on long-end demand?
A: We have taken this into account by setting a slightly lower minimum average maturity of 7.5 years. In general, the pension reform could affect demand for 30-year or ultra-long bonds. We have seen some steepening of the 10- to 30-year spread, and the Dutch curve has steepened a bit more than the German one. We think some of the impact is already priced in. There are also mitigating factors. Overall, we still see strong demand for our 30-year bond—remember, we are AAA. Pension funds are still expected to need the 30-year, and other investor types also remain interested. So, we see enough mitigating factors to reduce the impact of the transition.
Q: How are you incorporating uncertainty related to the pension reform into decisions regarding the size or timing of long-end taps?
A: We see this as a gradual process. Pension funds have time to transition to the new system. We talk with market participants and our counterparts—other DMOs that ask questions about this. We look at our transaction data and can show what is happening in the market. That’s why we are not very concerned. But of course, it will have an effect; we’re not blind to it and will monitor the situation. We have just issued a liquid 30-year bond, and we still see strong demand. And since we likely won’t issue another 30-year bond for the next five years if we follow our usual strategy, we are not very concerned.
Q: Given the improved fiscal backdrop and an evolving macroeconomic environment, how central will flexibility be to your 2026 issuance strategy?
A: Flexibility is part of our strategy; it’s one of our core values. We provide quarterly updates and try to be as transparent as possible. Some of our issuances are “to be determined” to ensure sufficient flexibility. And if funding needs change, we have the money market as a buffer within limits.
Q: Which parts of the curve are currently seeing the strongest investor demand?
A: Demand is actually strong across the entire curve. Our auctions go smoothly, whether for a 5-year bond, a money market instrument, or a long-term bond. We don’t see much difference. As long as we set a fair price and listen to the market, we are fine.
Q: Do you have any plans regarding the issuance of defense bonds?
A: That’s a political question I can’t answer. We are an operational agency and of course follow political discussions and trends. We would never issue such a bond on our own initiative. But if politicians ask us to consider it or to look into it, then we will do so.