FRANKFURT (MNI) – The German federal government sold E4.1245
billion in a top-up of its 0.75%-coupon two-year notes
(Schatzanweisungen) maturing in September 2013, the Bundesbank announced
Wednesday.

The bid/cover ratio of 1.8 (excluding retention) was higher than
the 1.4 b/c ratio at this security’s initial offering on August 17.

The average yield on the sale was 0.51%, down from the 0.73% yield
last month.

The minimum price of the top-up tranche was 100.475%, while the
average weighted price was 100.481%. All of the bids at the minimum
price were accepted.

There were a total of E7.255 billion in bids for the top-up sale,
including E3.95 billion in competitive bids and E3.305 billion in
non-competitive bids. The government accepted 90% of the non-competitive
bids.

The government retained E875 million of the issue for its open
market operations, bringing the total volume of the top-up tranche to E5
billion, as expected.

Including the E7 billion outstanding of this issue, the top-up
boosts the volume of the June 2013 Schatz to E12.0 billion.

The new tranche will settle on Friday, September 16. The issue
matures on September 13, 2013.

— Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com —

[TOPICS: M$G$$$,M$$FI$,MFXBO$,MGX$$$]