Germany sells EUR 1.046bln vs exp. EUR 1.5bln 2.50% 2035 and 0.00% 2050 Green Bund

Germany's recent bond auction fell short of expectations, raising EUR 1.046 billion against a forecast of EUR 1.5 billion.

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Germany sells EUR 1.046bln vs exp. EUR 1.5bln 2.50% 2035 and 0.00% 2050 Green Bund

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  • 2.50% 2035: 1.49x b/c (prev. 2.01x), average yield 2.93% (prev. 2.79%), retention 12.1% (prev. 10.0%)
  • 0.00% 2050: b/c 1.4x (prev. 2.0x), average yield 3.44% (prev. 3.14%), retention 48.4% (prev. 24.3%)
Context

The significant drop in bid-to-cover ratios, particularly for the longer-term 2050 bonds, indicates weaker demand, which could affect future issuance strategies and yield expectations in the broader fixed-income market.

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