Germany sells EUR 1.674bln vs exp. EUR 2bln 1.00% 2038 and 2.60% 2041 Bund

• 1.00% 2038: b/c 1.94x (prev. 1.84x), average yield 2.93% (prev. 2.86%), retention 17.9% (prev. 15.87%).
• 2.60% 2041: b/c 2.69x (prev. 2.61x), average yield 3.09% (prev. 3.23%), retention 14.7% (prev. 22.4%)

The auction results show strong demand for the 2038 Bund with a bid-to-cover of 1.94x, improving from the previous auction. However, the amount sold was below expectations, which could signal potential concerns about investor appetite in the current interest rate environment. The rising average yields indicate a shift in market sentiment, possibly impacting future rate expectations and risk sentiment across the curve.