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Decent EU-bond auction results

EUROZONE ISSUANCE

Some decent results for the EU-bond auction:

  • The 1.625% Dec-29 EU-bond saw a relatively low bid-to-cover of 1.29x. The lowest accepted price of 91.68 was higher than the prevailing market price in the 10 minutes ahead of the auction cutoff time. Post-auction we have moved lower in line with the wider selloff in EGBs.
  • The 2.75% Feb-33 Green EU-bond saw a stronger auction with a bid-to-cover of 1.62x. Again the lowest accepted price of 97.10 was in excess of the pre-auction mid-price and had not been seen in the market for 25 minutes ahead of the auction cutoff time. Despite remaining below this level now, the 2.75% Feb-33 Green EU-bond has held up a bit better than other EGBs post-auction.

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