FRANKFURT (MNI) – Germany sold E987.50 million in inflation-linked
bonds (“linkers”) in a top up of its 1.75%-coupon 10-year linker with
2020 maturity at a real average yield of 0.93%, the Bundesbank announced
Wednesday.
The real average yield was above the 0.70% real average yield at
the bond’s last auction November 10.
The bid/cover ratio (excluding retention) was 1.9, below the 2.0
b/c on November 10.
The lowest accepted price was 107.20, while the average weighted
price was 107.25. The government accepted 100% of the bids at the lowest
accepted price.
There were E1.915 billion in bids for the linkers, E1.390 billion
in competitive bids and E525 million in non-competitive bids. The
government accepted 70% of the non-competitive bids.
The government retained E12.50 million (or 1.25%) for its open
market operations. Total issuance was E1 billion as previously
announced. Counting the E12 billion already issued, total issuance for
this security now equals E13 billion.
Germany will issue E2 to E3 billion in linkers per quarter this
year, according to the government’s most recent issuance calendar. This
is Germany’s first linker sale this year and also the first linker sale
on continental Europe.
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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