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Germany Will Sell Linkers On Tuesday

GERMAN AUCTION PREVIEW
Germany will tap the 0.50% Apr-30 BundEi for E0.50bn and the 0.10% Apr-46 BundEi for E0.25bn on Tuesday.
  • BACKGROUND: Previous auction results (date, volume allotted, average yield, Buba cover, bid-to-cover): 0.50% Apr-30 BundEi (7 Jul 2020, E0.59bn, -1.15%, 1.80x,1.30x ), 0.10% Apr-46 BundEi (31 Aug 2020, E0.14bn, -1.17%, 1.40x, 0.80x).
  • RV/HISTORY: Bunds have started October on a weaker footing, having broadly rallied through September. Breakevens have inched higher in recent days, having compressed over August and September, while the EUR 5y5y forward inflation swap has stabilised. German factory orders will be published ahead of the Tuesday auction, which could be a trigger for price action.
  • TIMING: Results are due out shortly after the auction closes at 1030 London.

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