January 18, 2023 10:46 GMT
GERMAN AUCTION RESULTS
- Given that this is the first dual-line 30y Bund auction those results look decent enough.
- For the 1.80% Aug-53 Bund there was a bigger tail than at the November auction and the bid-to-cover / bid-to-offer were both down - but remember that the November auction was a strong auction.
- Also, despite the tail the LAP was still above the prevailing mid-price so we have seen the price move higher after the auction.
- These results for the 1.80% Aug-53 Bund are not strong but they're not hugely disappointing either given the dual-line aspect of the auction and the LAP being in excess of the mid-price.
- For the 0% Aug-50 Bund the results were much more solid - the average price matched the LAP so there was no tail.
- If the 0% Aug-50 Bund was auctioned on its own it would look relatively strong. The 1.80% Aug-53 Bund auction was decent.
- So all in all for the first dual-line 30y auction, Finanzagentur should be satisfied with how today's auction has gone.