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Poor auction

GERMAN AUCTION RESULTS

Poor auction results from the German 15y auction. The results for the on-the-run 1.00% May-38 Bund are ok - the LAP was below the pre-auction bid-price but there was a strong volume of bids, and the size of the auction was increased from E1.50bln to E1.75bln due to the very weak demand for the 4.25% Jul-39 Bund. For the latter, even the average price was below the pre-auction mid-price, and there were only E627mln of bids - so it was technically uncovered even with the reduction in the auction size from E1.00bln to E750mln.

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