Today the Bundesbank is conducting its 0.5% 07-Apr-17 Bobl auction, where it expects to raise an amount of approximately EUR 4bln. In terms of historical data:
The 0.5% Apr'17 Bobl is being auctioned today for the third time. This line was last auctioned in Jun'12 with a bid/cover ratio of 1.60 (yield 0.410%, retention 20.50%). The first auction was held in May'12, with a bid/cover ratio of 1.40 (yield 0.560%, retention 19.36%).
The bidding deadline is at 1030 BST, with results due shortly after.
AUCTION PREVIEW: UK GBP 4.50bln 1.0% Sep'17 Gilt Auction
Today the UK DMO is conducting its 1.0% Sep'17 conventional Gilt auction, where it expects to raise approximately GBP 4.50bln. In terms of historical data:
- The 1.0% Sep'17 Gilt was last auctioned in Jun'12 with a bid/cover ratio of 1.28 (yield 0.927%, yield tail 1.2BPS). The last three auctions on this line have seen an average bid/cover ratio of 1.53 (average yield 1.091%, average yield tail 0.8BPS).
The UK return to the market for the second time this week, following yesterday's longer-dated 2030 Gilt which showed average demand and a yield tail of 0.2bps. At the last 5y offering from the DMO, demand was weak and came in with a tail of 1.2bps, however today's auction comes just one day ahead of the BoE's rate and asset purchase facility target decision on Thursday, where expectations are for another round of asset purchases. This expectation will likely increase appetite for the 5y in today's offering, as a resumption of bond buys as soon as next week looks likely to add to demand today.
Bids are submitted by 1030 BST, and results are expected between 1035-1045 BST.
Sources: www.deutsche-finanzagentur.de/, http://www.dmo.gov.uk
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