Free Trial
AUDUSD TECHS

Trades Through Key Short-term Resistance

US TSYS

Compelling Case for 50Bp Hikes

US TSY FUTURES

BLOCK, 5Y Sale

EURJPY TECHS

Hits Bull Trigger

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

On Wednesday, Germany........>

GERMAN AUCTION PREVIEW
GERMAN AUCTION PREVIEW: On Wednesday, Germany sells E3bln of the 10Y bmk, 0.5%
Aug-27
BACKGROUND: There is E13bln of Schatz redeeming on Thursday. Such redemptions
are likely heavily-owned by the ECB/Buba and so cannot be reinvested at the
auction but only in secondary trading. However, this is still a small benefit. 
- RV: A good concession was built in on Tuesday but statistically there has been
no strong evidence of daily mean-reversion for the 10Y Bund since early July. On
the positive side, the 5-10Y German spread has steepened in the past week and
the more important spread between the Bund future and 10Y bmk is at its steepest
since the Aug-27 was issued. This offers an easy hedge, better than using swaps
to get into the auction.
- HISTORY: Bidding at 10Y Bund auctions are modest but there is generally more
than available for sale. According to the Buba's bid-cover calculation, the six
auction average is 1.45x and the yield at the Aug 23 auction was 0.41%.
- RESULTS: Auction results are due after bidding close at 0930GMT.

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.