FRANKFURT (MNI) – The German government has increased its bond and
bill issuance for the third quarter of this year to a combined E71
billion from E68 billion projected in December, the Federal Finance
Agency reported on Tuesday.
Due to an “increase of the net borrowing requirement” of the
federal budget, the government now intends to borrow E50 billion on the
capital market in Q3 instead of E47 billion. It will still issue E21
billion in bills, as initially projected last year.
The first auction for the coming quarter comes on July 4, when the
government will tap its 0.5% five-year Bobl for E4 billion. Launched in
early May and tapped in June, this issue will be topped up for a last
time again on August 1 for E4 billion.
On July 11, Germany will reopen its 1.75% July 2022 Bund for E5
billion, up from the E4 billion initially announced.
Two weeks later, the Finance Agency will auction E3 billion in a
top-up of its July 2044 Bund, up from E2 billion previously reported
last December.
The first initial offering scheduled for the coming quarter comes
on August 22, when the Federal Finance Agency will launch a new Schatz
for E5 billion. The security will be topped up on September 19 by E5
billion and again in October, also by E5 billion.
The third quarter will include two more new issues. The first is a
10-year Bund scheduled September 12 for E5 billion. Top-ups are planned
September 26 for E5 billion (revised from E4 bln) and in October and
November, each time for E4 billion.
The final new issue for Q3 will be a five-year Bobl for E5 billion.
The security is to be introduced on September 12, with subsequent
top-ups slated for October and November, both for E4 billion.
–Frankfurt bureau: +49-69-720 142; email: frankfurt@marketnews.com —
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