HALISTER1: Netherlands 2037 Auction Sees High Overbidding Around 30c: ABN

Netherlands 2037 Auction Sees High Overbidding Around 30c: ABN

(Bloomberg) -- DSTA sold EU1b of the 01/2037 bond, changing its auction price 3 times; the average price of 172.80 (0.298%) suggests average overbidding at around 30c, Kim Liu, senior rates strategist at ABN Amro, writes in client note.
  • Overbidding was higher than average in recent long-end Dutch auctions
  • Pattern in auction prices shows DSTA managed to sell bond at very steep levels to exploit potential demand in the market
    • High auction prices also meant that the market had difficulties to digest the auction, probably resulted in a choppy bidding procedure
  • NOTE: Netherlands Sells EUR1 Bln 4% 2037 Bonds; Yld 0.298%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Kim Liu (ABN AMRO Group NV)

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