FRANKFURT (MNI) – The German federal government sold E3.19470
billion of its new 3.25%-coupon 30-year bond at a minimum price of
98.20, the Bundesbank said Wednesday.
The average yield on the initial tranche of the new issue, which
matures on July 4, 2042, was 3.33%.
The average weighted price came to 98.38. The government’s
Financing Agency accepted 95% of bids at the minimum price.
The bid-cover ratio was 1.2, up from 1.1 at the last 30-year
auction, a top up of the 4.75% July 2040 Bund, April 21. Like the April
30-year auction, today’s auction was also undersubscribed. The
government had sought E4 billion in bids, but only received E3.764
billion.
Of those, E2.691 billion were in competitive bids and E1.073
billion were non-competitive bids. The government accepted 100% of the
non-competitive bids.
The Bundesbank retained E805 million of the issue (or just over
20%), which is strippable, for its open market operations, bringing the
total volume of the tranche to E4 billion, as announced.
The sale will settle on Friday.
–Frankfurt Bureau tel.: +49-69-720 142, email: frankfurt@marketnews.com
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