Germany sells EUR 4.282bln vs exp. EUR 6bln 2.50% 2028 Schatz: b/c 1.7x & avg. yield 2.47%

The German Schatz auction saw a smaller issuance than expected, with EUR 4.282 billion sold compared to an anticipated EUR 6 billion. The bid-to-cover ratio of 1.7x indicates decent demand, but the average yield of 2.47% suggests that investors remain cautious about the duration amid rising interest rates. This could signal a tightening in appetite for sovereign debt, potentially influencing yield curves and broader market sentiment.