AUCTION PREVIEW: German 2Y Tap Seen Supported by Redemptions
Source: BFW (Bloomberg First Word)
Tickers
3413Z GR (Federal Republic of Germany)
People
Erjon Satko (Merrill Lynch International)
Nishay Patel (UBS Global Asset Management Japan Ltd)
Puja Sawant (Citigroup Inc)
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UUID: 7947283
(Bloomberg) -- Germany taps the 2y BKO, March 2018, for EU4b at 11:30am CET.
Alert: HALISTER1- NOTE: Germany OBL 2.75% April 2016 matures on Friday with coupon and redemptions eligible for reinvestment at today’s auction
- 2Y Germany is on the cheaper end of the 1y range on ASW, see chart here
- Next Schatz auction will be the sale of a new 2y benchmark, June 2018, on May 11
- BofAML (Erjon Satko)
- EU18b in coupon and redemptions due to the maturing OBL may support the sale of the bond
- ECB releases minutes of the last meeting tomorrow which may provide insight on the possible path of the ECB monetary policy in case inflation disappoints further; likelihood of future rate cuts concerns specifically BKOs after this last tap
- Citigroup (Puja Sawant)
- 2y sector is trading cheap vs fitted curve and four out of the five cheapest bonds on the German curve are from the 2y sector
- Schatz March 2018 looks cheap vs its surrounding issues
- UBS (Nishay Patel)
- Cash flow support due from Germany when OBL 2.75% April 16 matures could provide support for the auction due to T+2 settlement
Source: BFW (Bloomberg First Word)
Tickers
3413Z GR (Federal Republic of Germany)
People
Erjon Satko (Merrill Lynch International)
Nishay Patel (UBS Global Asset Management Japan Ltd)
Puja Sawant (Citigroup Inc)
To de-activate this alert, click here
UUID: 7947283