Free Trial
STIR

Goldman Recommend Short SFRZ3

US TSYS

Holding Cheaper

JPY

Yen Goes Offered On Hawkish Fedspeak

KRW

Won Has Best Week Since 2008

RBA

VIEW: RBC: A Slower Pace Of RBA Tightening

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

The Deutsche Finanzagentur...>

GERMAN AUCTION PREVIEW
GERMAN AUCTION PREVIEW: The Deutsche Finanzagentur re-opens its 5-year Obl 0.00%
Oct-22 issue on Wednesday for up to E3bln in size. 
- BACKGROUND: There are no coupon or redemption payments to help this but the
market is abuzz with talk of ECB PSPP buying in the secondary market. 
- RV: Outright, the yield is -0.373%, just one basis point above the low since
June. Also unfortunately, the spread of the Obl Oct-22 to that of the CTD into
the Bobl contract, the Bund 1.75% Jul-22, has narrowed in the past two weeks.
The 2-5Y German spread is the flattest since mid-September and the spread
against the previous Obl benchmark, the Obl S-175 has also narrowed
substantially. German debt also looks expensive to the swap curve. Where value
does exist is against semi-core and peripheral markets as many spreads are close
to multi-month lows helped by nearly everybody suggesting carry trades given the
tame ECB outlook. Auction may be tough despite the smallish E3bln size. Six
month auction average bid-cover is 1.37x, yield was -0.36% at previous auction.
- RESULTS: Auction results are due around 1035GMT.

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.