FRANKFURT (MNI) – The German federal government sold E1.625 billion
of its 3.25%-coupon, 30-year bond with a July 2042 maturity at a minimum
price of 108.5, the Bundesbank announced Wednesday.
The average yield on the top-up tranche was 2.82%, down from 3.43%
at the Bund’s previous top-up on July 20, 2011. Today’s average weighted
price was 108.7.
There were a total of E1.777 billion in bids for today’s sale,
including E1.085 billion in competitive bids and E692 million in
non-competitive bids. The German government accepted 80% of the bids at
the lowest accepted price, and 100% of the non-competitive bids.
The government retained E375 million of the issue for its open
market operations, bringing the total volume of the top-up tranche to E2
billion, as previously announced.
Including the E10 billion of the issue outstanding, the fourth
top-up brings the benchmark 30-year bond’s volume to E12 billion. The
new tranche will settle on Friday.
The bid-cover ratio (excluding retention) at today’s auction was
1.1, down from the 1.3 b/c in April.
The issue is strippable and matures on July 4, 2042.
— Frankfurt bureau +49-69-720 142; email: frankfurt@marketnews.com
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