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0% Oct-28 EU NGEU Auction Preview

EUROZONE ISSUANCE
MNI (London)
  • On offer today: E2.5bln of the 0% Oct-28 EU NGEU (ISIN: EU000A3KWCF4).
  • Market colour: The 7-year NGEU bond yield has been increasing since mid-December from -0.284%, rising substantially in the first week of February and currently sitting at 0.833%. The final days of February saw a 32bp dip due to escalations in the Ukraine invasion, which saw yields take two weeks to regain momentum. Spreads to the 0% Nov-28 Bund have widened since late January, peaking over 48bp on March 4 as geopolitical tensions grew. They have since narrowed to 38.5bp.
  • Timing: Results will be available shortly after the auction closes at 10:30 BST / 11:30 CEST.


Auction history:

DateIssuedAvg yieldBid/coverPricePre-auctOperation
Current0.833%
25-Oct-21E2.497bln-0.117%1.58x100.81100.48Auction
14-Sep-21E9bln-0.280%101.99NewSynd

Similar past auction: The 0% Jul-26 EU NGEU (ISIN: EU000A3KTGV8) is one of the few bonds from the programme launched last year to have since been reopened.

DateIssuedAvg yieldBid/coverPricePre-auctOperation
Current0.601%
28-Feb-22E2.5bln0.161%1.33x99.3099.11Auction
27-Sep-21E2.495bln-0.487%2.33x102.35102.03Auction
29-Jun-21E9bln-0.335%101.69NewSynd

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