EU sells EUR 6.092bln vs exp. EUR 7bln 2.625% 2028, 3.125% 2030 and 3.375% 2038 EU Bond

The EU's bond auction saw a total sale of EUR 6.092 billion, falling short of the EUR 7 billion expectation, which suggests weaker demand.

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  • EUR 1.93bln 3.375% 2038: b/c 1.16x (prev. 1.42x), average yield 3.319% (prev. 3.38%)
  • EUR 2.18bln 3.125% 2030: b/c 1.17x, average yield 2.454%
  • EUR 1.986bln 2.625% 2028: b/c 1.19x (prev. 1.15x), average yield 2.185% (prev. 2.128%)
Context

The bid-to-cover ratios for the bonds were mixed, with the longer-dated issues seeing significantly reduced interest, possibly reflecting caution from investors amid rising yields. This could influence market sentiment towards EU bonds and have ripple effects on interest rates and risk appetite in the broader fixed income space.

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