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30-year 1.25% Aug-48 Bund

GERMAN AUCTION PREVIEW
  • Germany will come to the market this morning to sell E1.5bln of the 30-year 1.25% Aug-48 Bund.
  • The last 30-year Bund auction saw the 0% Aug-50 Bund sold for E1.50bln on 17 March in an auction that was technically uncovered (only E1.415bln of bids were received).
  • The 15-year Bund auction on 3 March was also uncovered but the 31 March auction saw a bid-to-cover of 1.10x.
  • The Bundesbank will be hoping for a similar improvement for the 30-year auction today, which will act as a vote of confidence for longer-dated demand.
  • However, the auction comes on the back of yesterday's weak linker auction with only E387mln bids for an intended issue of E700mln (leading to a bid-to-cover of 0.65x).
  • Timing: Results will be available shortly after the auction closes at 10:30BST.

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