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Free AccessThe Deutsche Finanzagentur...>
GERMAN AUCTION PREVIEW: The Deutsche Finanzagentur taps the 2.50% Jul-44 Bund
for E1.5bln in size.
- BACKGROUND: Today's auction of the 0.0% Jun-20 Schatz was technically
uncovered as was the case for half of the previous eight auctions. However,
speculation that the EU may issue a joint statement showing support for Angela
Merkel may help alleviate domestic political risks and ease pressure on bunds.
- RV/HISTORY: The Jul-44 rallied sharply during the second half of May, before
reversing in the early part of June. The yield currently trades at 1.052% and is
46bps inside the comparable EUR swap. The German sovereign curve has steepened
over the course of May and June with the 5s30s spread widening to 138bps from a
2018 low of 122bps on January 31.
- TIMING: Results are due soon after the auction closes at 0935GMT
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.