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New 0% Oct-26 Bobl

GERMAN AUCTION PREVIEW
  • Germany will come to the market this morning to sell E5bln of the new 0% Oct-26 Bobl.
  • Auctions for German nominal issues have been weak over the past couple of months with some technically uncovered auctions.
  • Indeed, the last auction of the 0% Apr-26 Bobl on 2 June only saw a bid-to-cover of 1.00x (bid-to-offer of 1.21x).
  • With the larger auction size associated with the launch (E5bln as opposed to the E4bln recent Bobl auctions), we think there is a real risk that we see another technically uncovered auction today.
  • Timing: Results will be available shortly after the auction closes at 10:30BST/11:30CET.

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