DAILY BOND AUCTION PREVIEW

EU

AUCTION PREVIEW: ECB 7-Day MRO

Last week the ECB announced that EUR 35mln was allotted in its 7-day USD-op. Results are usually published around 0950GMT.

 

AUCTION PREVIEW: German EUR 3bln 0.5% 2027 Bund Auction

The auction should go well overall with value to be found, a precedent for the market turning on prior 10-year auctions, and amid a solid history for 10-year auctions.

- Big selloff over last week provides needed concession, leaves Bunds middle of range
- Bunds have outperformed within German curve, wings have lagged
- German bonds have lagged OATs, especially in 10-year space
- Recent high for 10-year Bund yields coincided with prior 10-year auction
- Lot of supply this week to weigh on market, distract investors, potential relief at its passing
- Solid history for 10-year Bund auctions

In terms of historical data:

Prev. b/c 1.69, average yield 0.48% and retention 20.5%

Bids are submitted by 1030GMT and results are published shortly after

 

15 Nov 2017 - 06:53- Fixed IncomeResearch Sheet- Source: RANsquawk

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