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0% Feb-31 Bund

GERMAN AUCTION PREVIEW
  • Germany will come to the market this morning to reopen the 0% Feb-31 Bund for the second time since its launch with E4bln on offer.
  • With core fixed income having sold off fairly aggressively over the past month, at prevailing yields (-0.33%), today's auction could see the highest 10y yield acheived via a primary sale since January 2020 (which saw -0.25%).
  • Bids for the two auctions this year have been at least E6.5bln, but have been below the peak of April-August 2020.
  • Nevertheless we continue to look for a decent auction today.
  • Timing: Results will be due shortly after the auction closes at 10:30GMT.

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