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0% Feb-31 Bund

GERMAN AUCTION PREVIEW
  • Germany will come to the market this morning to sell E4bln of the 10-year 0% Feb-31 Bund.
  • Demand for 10-year Bunds has remained strong in recent auctions with bid-to-covers of 1.35x, 1.63x and 1.28x respectively and bid-to-offers of 1.64x, 1.97x and 1.55x.
  • Longer-dated German auctions have been relatively disappointed in March with several technically uncovered (the 15-year Bund, 30-year Bund and 25-year ILB).
  • However, shorter auctions have seen demand hold up well (Schatz, Bobl, 10-year ILB).
  • We expect to see a relatively strong auction today.
  • Timing: Results will be available shortly after the auction closes at 10:30GMT.

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