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Germany Will Sell E1bn of the 0% Aug-50 Bund On Wednesday

GERMAN AUCTION PREVIEW
Germany Will Tap The 0% Aug-50 bund for E1bn on Wednesday.
  • BACKGROUND: At the last auction of the 0% Aug-50 bund on August 19, E1.25bn was allotted at an average yield of -0.05%, Buba cover of 2.42, bid-to-cover of 2.42. The issue serves as the current 30-year benchmark and has so far been tapped four times this year.
  • RV/HISTORY: The 0% Aug-50 bund trades at a yield of -0.130%, having rallied through the course of September and into October. The yield is now back down to multi-month lows, with the issue trading 13bp inside the comparable EUR swap. There will be no significant data releases ahead of the Wednesday auction which could serve as a trigger for price action.
  • TIMING: Results are due shortly after the auction closes at 1030BST.

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