EU sells EUR 6.421bln vs exp. EUR 7.0bln 2030, 2035 and 2040 NGEU bonds

The EU's bond sale totaled EUR 6.421 billion, slightly below the expected EUR 7 billion, indicating a modest demand amid rising yields, particularly for the 2035 bond.

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EU sells EUR 6.421bln vs exp. EUR 7.0bln 2030, 2035 and 2040 NGEU bonds

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  • Sells EUR 2.31bln vs exp. EUR 2.5bln 2.5% 2030: b/c 1.28x, average yield 2.586%
  • Sells EUR 2.4bln vs exp. EUR 2.5bln 3.375% 2035: b/c 1.56x (prev. 1.19x), average yield 3.170% (prev. 3.063%)
  • Sells EUR 1.711bln vs exp. EUR 2.0bln 2.5% 2040: b/c 1.34x, average yield 3.643%
Context

The stronger bid-to-cover ratios for both the 2035 and 2040 bonds suggest renewed interest in longer-dated securities, which may affect the yield curve and provide insights into future rate expectations.

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