EU sells EUR 6bln vs exp. EUR 7bln 2.50% 2031, 3.25% 2036, and 4.00% 2044 Bonds

The EU’s bond auction sold EUR 6 billion, slightly below the expected EUR 7 billion, indicating weaker demand as reflected in the bid-to-cover ratios.

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EU sells EUR 6bln vs exp. EUR 7bln 2.50% 2031, 3.25% 2036, and 4.00% 2044 Bonds

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  • Sells EUR 2.05bln 2.50% 2031: b/c 1.24x (prev. 1.27x) & average yield 2.980% (prev. 2.619%)
  • Sells EUR 2.58bln 3.25% 2036: b/c 1.33x & 3.477% average yield
  • Sells EUR 1.41bln 4.00% 2044: b/c  1.14x (prev. 1.19x) & average yield 3.937% (prev. 3.786%)
Context

The increase in average yields across maturities suggests rising borrowing costs, which may influence market sentiment on Eurozone fiscal stability and impact future rate expectations.

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