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New 0% Jun-23 Schatz

GERMAN AUCTION PREVIEW
  • Germany will come to the market tomorrow to launch the new 0% Jun-23 Schatz for E6bln.
  • A number of German auctions have been on the relatively weak side recently, with bid-to-cover ratios barely exceeding 1. Indeed the three auctions of the 0% Mar-23 Schatz saw bid-to-cover ratios of 1.03x, 1.27x and 1.09x respectively for February, March and April. Bid-to-offer ratios were 1.31x, 1.61x and 1.31x.
  • At the time of writing, Schatz yields have been approaching the highs of the years but despite medium-term inflation expectations picking up, the bar remains very high for the ECB to tighten monetary policy and the move in Schatz has been rather limited.
  • Timing: Results will be available shortly after the auction closes at 10:30BST.

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