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RANsquawk DAILY G7 BOND AUCTION PREVIEW – 14/02/12
AUCTION PREVIEW: SP EUR 5.5bln combined 12- and 18-month T-Bill auctions
Today the Spanish Debt Agency is conducting its 12- and 18-month T-Bill auctions where it expects to raise a combined amount of EUR 5.5bln. In terms of historic data:
- The last 12-month T-Bill auction was held in Jan'12, with a bid/cover ratio of 3.54 (yield 2.049%). The last three 12-month auctions saw an average bid/cover ratio of 2.94 (average yield 3.707%).
- The last 18-month T-Bill auction was held in Jan'12, with a bid/cover ratio of 3.23 (yield 2.399%). The last three 18-month auctions saw an average bid/cover ratio of 4.72 (average yield 3.928%).
It is worth noting that Spain has so far raised EUR 28.54bln in 2012.
Results are expected between 0930-0945 GMT.
AUCTION PREVIEW: NDL EUR 3-4bln 2.50% Jan'17 DSL Auction
Today the Dutch Debt agency is conducting its 2.50% 15-Jan-17 DSL auction, where it expect to raise an amount in the range of EUR 3-4bln.
This line has been tapped just twice before. The last auction on was held in Oct'11, with an issue price of 103.60 (yield 1.777%). The first issuance on this line was held in Jun'11, with an issue price of 99.25 (yield 2.648%).
It is worth noting that the Dutch Treasury has so far raised EUR 21.03bln in 2012.
The Dutch Treasury will announce the issue price at 0900 GMT. Results are expected between 0930-0945 GMT.
AUCTION PREVIEW: IT EUR 6bln combined 6.0% Nov'14, 3.0% Nov'15, and 4.0% Feb'17 BTP Auctions
Today the Italian Treasury is conducting its 6.0% 15-Nov-14, 3.0% 1-Nov-15, and 4.0% 1-Feb-17 BTP auctions, where it expects to raise an amount of approximately EUR 6bln.
- The 6.0% Nov'14 BTP was last auctioned in Jan'12 with a bid/cover ratio of 1.22 (yield 4.830%). The last three auctions on this line have seen an average bid/cover ratio of 1.36 (average yield 6.110%).
- For both the 3.0% Nov'15 and 4.0% Feb'17 BTPs, historical comparisons are not available or accurate for these lines due to a lack of recent data.
As focus in the markets still remains very much on the Greek situation, some vague optimism was sparked following the passing of the austerity vote in Athens in the early hours of Monday, consequently removing a wedge of risk as Greece nears its EUR 130bln bailout. The Italian 10-year yield still sits below the 6.0% level at a slightly less concerning 5.62%, with this along with yesterday's successful BOT auctions where they sold at the top of their indicative range, today could see continuation of this theme with solid appetite for Italian paper today.
It is worth noting that the Italian Treasury has so far raised EUR 48.18bln in 2012.
The bidding deadline is at 1000 GMT with results are expected between 1000-1030GMT.
AUCTION PREVIEW: ECB's 7-day Refinancing Operations
Today the ECB is conducting its 7-day refinancing operation a RTRS poll expects the ECB to allot EUR 115bln with the expected range being EUR 100-180bln. In the last 7-day refinancing operation the ECB allotted an amount of EUR 109.46bln with 135 total bidders.
Results are expected between 1000-1030 GMT.
AUCTION PREVIEW: BEL EUR 3bln combined 3- and 12-month T-Bill Auctions
Today the Belgian debt agency is conducting its 3- and 12-month T-Bill auctions, where it expects to raise a combined amount of approximately EUR 3bln. In terms of historical data:
- The 3-month T-bill auction was last held in Jan'12, with a bid/cover ratio of 2.70 (yield 0.506%). The last three 3-month T-Bill auctions saw an average bid/cover ratio of 2.36 (average yield 0.400%). The Belgian debt agency has set an issuance guidance of EUR 1.8bln for this line.
- The 12-month T-bill auction was last held in Jan'12, with a bid/cover ratio of 2.06 (yield 1.162%). The last three 12-month T-Bill auctions saw an average bid/cover ratio of 1.97 (average yield 2.242%). The Belgian debt agency has set an issuance guidance of EUR 1.2bln for this line.
It is worth noting that the Belgian Treasury has so far raised EUR 8.795bln in 2012.
Results are expected between 1000-1100 GMT.
AUCTION PREVIEW: GR EUR 1bln 13-week T-Bill auction
Today the Greek Debt Agency is conducting its 13-week T-Bill auction where it expects to raise an amount of EUR 1bln. The last 13-week T-bill auction was held in Jan'12, with a bid/cover ratio of 2.94 (yield 4.630%). The last three 13-week T-bill auctions saw an average bid/cover ratio of 2.88 (average yield 4.600%).
It is worth noting that Greece has so far raised EUR 4.06bln in 2012.
Results are expected between 1000-1100 GMT.
AUCTION PREVIEW: BoE Asset Purchase Program in the maturity range of 2027-2060
Today the BoE will conduct its first round of asset purchases since announcing that it is to buy up to GBP 50bln worth of gilts via the Asset Purchase Facility (APF). The boundaries for the different maturity sectors have been adjusted for this new set of purchases since the last operation so they now fit with the sectors used by the DMO. The MPC currently expects the program to take 3 months to complete and will purchase evenly across the three sectors.
The size of today's auction will be GBP 1.5bln, will be centred around 'over 15 years' maturity sector, with the BoE buying in the 2027-2060 range.
Results are expected to be published shortly after 1445GMT.
AUCTION PREVIEW: US Fed's Outright Treasury Coupon Purchase Feb'20 – Nov'21
Today the NY Fed is conducting its Outright Treasury Coupon Purchase in the maturity range Feb 2020 – Nov 2021. This is the eleventh operation of this series as part of the Fed's new maturity extension program, and until February 29th 2012, the Fed expects to buy approximately USD 26.53bln in the remaining 8 operations and sell USD 24.46bln in the remaining 3 operations. It is worth noting that the Fed originally planned to buy about USD 45bln in 15 operations and sell about USD 43bln in 6 operations.
In today's operation, the Fed expects to buy in the range of USD 4.25bln – USD 5.00bln. The last Outright Treasury Coupon purchase operation in the maturity range of 8 – 10 years was on the 2nd February 2012, with a purchase size of USD 4.95bln and a submitted/accepted ratio of 3.35. It is worth noting that effective from September 30, 2011, the Fed plans to buy 32% of its coupon securities in this maturity range.
This Operation is tentatively scheduled to begin around 1515 GMT (1015 ET) and close at 1600 GMT (1100 ET). Results are released shortly after 1600 GMT (1100 ET).
Sources: www.tesoro.es/en/index.asp?, www.dsta.nl/english, www.publicdebt.it, http://www.ecb.int/home/html/index.en.html, minfin.fgov.be, www.mof-glk.gr/en/home.htm, http://www.bankofengland.co.uk/, http://www.newyorkfed.org/markets/tot_operation_schedule.html
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*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
