0% Aug-31 Bund

Germany will come to the market today to sell E3.0bln of the 10-year Bund in their final auction for 2021.

• On offer will be the 0% Aug-31 Bund. ISIN: DE0001102564
• Auction history: This will be the fifth auction of the 0% Aug-31 Bund, which was launched on June 16 this year. That auction saw E5.0bln issued at an average yield of -0.190% and a bid-to-cover of 1.08x.
• The following auction sizes were smaller, all with a nominal amount of E4.0bln except for the most recent auction on 10 November which saw E3.0bln issued.
• It is worth noting that the most recent two auctions were technically uncovered, and German auctions in general have been weak for some time now.
• The November auction saw E2.46bln allotted against an issuance volume of E3.0bln at a yield of -0.290%, resulting in a bid-to-cover of 0.93x.
• Market colour: Yields on the 0% Aug-31 Bund have been on a downward trajectory since the beginning of November, hitting a low of -0.3962% on 2 December before stabilising somewhat and trading between that level and up to -0.35%. At writing, yields are close to the middle of the range at -0.374%
• Timing: Results are due shortly after the auction closes at 10:30GMT / 11:30CET.