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Mildly disappointing 10-year Bund auction

GERMAN AUCTION RESULTS
  • Not the strongest German 10-year auction with a decline in the bid-to-offer / bid-to-cover compared to last month's auction - despite today seeing a smaller auction size.
  • In fact, in terms of 10-year Bund auctions, this appears to have similar metrics to the 6 September auction (worse than any since) and that auction was for E5bln (E4.1bln allotted) - so much larger than today's auction.
  • However, the lowest accepted price still exceeded the pre-auction mid-price and there has been little market reaction.
  • Overall we would say this is a mildly disappointing auciton.

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