FRANKFURT (MNI) – Germany sold E1.00 Bn in inflation-linked bonds
(“linkers”) in a top up of its 1.75%-coupon 10-year linker at a real
average yield of 1.10%, above the 0.86% average yield at the last top up
June 9, the Bundesbank announced Wednesday.
The bid/cover ratio (excluding retention) was 1.6, below the 1.9
b/c at the last auction.
The lowest accepted price was 105.89, while the average weighted
price was 105.97. The government accepted 100% of the bids at the lowest
accepted price.
There were E1.595 billion in bids for the linkers, E1.095 billion
in competitive bids and E500 million in non-competitive bids. The
government accepted 100% of the non-competitive bids.
The government failed to retain any of the issuance for its open
market operations. Total issuance was E1 billion as previously
announced. Counting the E9 billion already issued, total issuance for
this security now equals E10 billion.
Germany will issue E3 to E4 billion in linkers this quarter,
according to the government’s most recent issuance calendar. This is the
first linker issuance in Q3.
The linkers will mature on April 15, 2020. The bond is linked to
Eurozone HICP ex-tobacco.
–Frankfurt Newsroom +49 69 72 01 42: email: fftmail@marketnews.com–
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