Germany sells EUR 0.776bln vs exp. EUR 1.0bln 2.90% 2056 & EUR 0.786bln vs exp. EUR 1.0bln 2.60% 2041

• EUR 776mln 2.60% 2041: b/c 2.61x (prev. 3.4x), average yield 3.23% (prev. 3.02%), retention 22.4% (prev. 15.4%)
• EUR 786mln 2.90% 2056: b/c 2.41x (prev. 2.1x), average yield 3.49% (prev. 3.45%), retention  21.4% (prev. 17.8%)

The recent German bond auction fell short of expectations, with demand metrics showing a decline compared to previous sales. The higher average yields indicate a shift in investor sentiment and may suggest increasing concerns about rising rates or inflation, impacting the broader fixed income landscape and attracting attention for its implications on duration and risk appetite.