BUNDS: 2026 Borrowing Headlines Get Wider Attention; Light Knee-jerk Downside

This morning, Germany will hold a 30-year Bund auction. On offer will be E1.0bln of the 0% Aug-50 Bund (ISIN: DE0001102481) alongside E1.5bln of the 2.90% Aug-56 Bund (ISIN: DE000BU2D012).

• Recent auctions in the German 30y segment have seen demand metrics which were uneven at best and, on balance, signal weak current primary demand for the long end of the German curve. In 2025, bid-to-covers ranged between 1.03x and 7.80x, while bid-to-offers ranged between 0.79x to 7.75x. For both of these metrics, there was a net downward trend since around April. Pre-auction midprices were above the lowest accepted prices achieved at the auction throughout the year with the exception of the 20 August re-open of the 2.50% Aug-54 Bund.
• The 0% Aug-50 Bund was last issued in February, achieving a solid 2.78x bid-to-cover and a 2.28x bid-to-offer. Other 30-year auctions since then have generally not been as strong. The 2.90% Aug-56 Bund meanwhile was last sold on September 17, seeing a 1.82x bid-to-cover and a 1.37x bid-to-offer.
• The next German auction will be E750mln of the 1.30% Oct-27 Green Bobl (ISIN: DE0001030740) alongside E750mln of the 2.50% Feb-35 Green Bund (ISIN: DE000BU3Z047). The last 30-year German auction of the year will be on November 12, with the 2.90% Aug-56 Bund on offer again alongside another line.
• Timing: Results will be available shortly after the bidding window closes at 10:30BST / 11:30CET.

SFIH6 96.25/96.05/95.85p fly, bought for 4.75 in 5.5k.

Estoxx rolling up Put:

• SX5E (21st Nov) 5200p vs (19th Dec) 5500p, bought the Dec for 80.5 in 11k.