FRANKFURT (MNI) – The German federal government topped up its
2.25%-coupon, September 2020 Bund by E4.3953 billion at a minimum price
of 98.77 the Bundesbank announced Wednesday.
The average yield on the top-up of the 10-year Bund was 2.39%, up
from 2.37% at the bond’s initial auction August 18.
The weighted average price came to 98.80, and the government
accepted 100% of bids at the minimum price.
There were a total of E7.939 billion in bids for today’s sale,
resulting in a bid/cover ratio (excluding Bundesbank retention) of 1.8
up from 1.6 on August 18.
Total bids included E3.722 billion in competitive bids and E4.217
billion in non-competitive bids. The German government accepted 90% of
the non-competitive bids. The bonds mature on September 4, 2020 and are
strippable.
The government retained E604.7 million (or 12.1%) of the issue for
its open market operations, bringing the total volume of the latest
tranche to E5 billion, as expected. Including the E6 billion of the bond
outstanding, total issue volume is now E11 billion.
The bond settles on Friday.
— Frankfurt bureau. Tel: +49 69 720142; Email: frankfurt@marketnews.com
[TOPICS: M$G$$$,M$$FI$,MFXBO$,MGX$$$]