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Germany Will Sell A Combined E700mn Of ILBs On Tuesday

GERMAN AUCTION PREVIEW
  • Germany will come to market on Tuesday to re-open the 0.10% Apr-26 ILB for E500mn and the 0.10% Apr-46 ILB for E200mn.
  • Previous auction results (date, volume, average yield, Buba cover, bid-to-cover): 0.10% Apr-26 ILB (1 September 2020, EUR0.183bn,-1.15%, 1.87x, 1.37x), 0.10% Apr-46 ILB (2 March 2021, E0.137bn, 1.33x, 0.91x).
  • Confirmation of a strong manufacturing PMI print in April (66.2) and sharp acceleration in retail sales in March (11.0% Y/Y vs -0.2% consensus) point towards a rebound in economic activity that will keep pressure on both long-end yields and implied inflation rates.
  • Market-based measures of inflation expectations in Germany and the euro area appear to have stabilised in recent weeks, while remaining at multi-year highs.
  • TIMING: Results are due out shortly after the auction closes at 1000BST.

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