GERMAN AUCTION RESULTS: Aug-54 Line Very Weak
Aug-20 09:46
Very weak Bund auction on the Aug-54 line with a 1.03x bid-to-cover and 0.79x bid-to-offer. The low price achieved at the auction was also lower than the pre-auction midprice.
- The 1.03x bid-to-cover is the lowest seen since 2018 in the German 30-year segment.
- The line is seeing some contained weakness, printing 85.440 vs 85.560 right before the auction.
- The Aug-46 line fared better, with solid demand metrics and the low price achieved at the auction above the pre-auction mid.
- Bund futures came off the highs past the auction.
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DUTCH T-BILL AUCTION RESULTS: 2.5/3.5-month DTCs
Jul-21 09:40
| Type | 2.5-month DTC | 3.5-month DTC |
| Maturity | Sep 29, 2025 | Oct 30, 2025 |
| Amount | E1.74bln | E1.29bln |
| Target | E1.0-2.0bln | E0.5-1.5bln |
| Previous | E1.21bln | E1.39bln |
| Avg yield | 1.935% | 1.923% |
| Previous | 1.905% | 1.900% |
| Bid-to-cover | 1.55x | 1.43x |
| Previous | 2.05x | 1.67x |
| Previous date | Jul 07, 2025 | Jul 07, 2025 |
STIR: J.P.Morgan Recommend Tactical GBP Forward Curve Flattener
Jul-21 09:32
J.P.Morgan recommended tactical fronts/reds SONIA curve flatteners (3Mx1Y/15Mx1Y) late on Friday.
- This recommendation is based on “RV dislocation (1Y/1Yx1Y SONIA now looks 6bp too steep on a relative basis vs. 1Yx1Y SONIA)” and their view that last week’s data “doesn’t warrant the BoE shifting to a faster easing pace than the current quarterly pace”.
GERMAN T-BILL AUCTION RESULTS: 3/9-month bubills
Jul-21 09:32
| Type | 3-month Bubill | 9-month Bubill |
| Maturity | Oct 15, 2025 | Apr 15, 2026 |
| Allotted | E1.9bln | E2.495bln |
| Previous | E1.739bln | E2.4bln |
| Total sold | E2bln | E3bln |
| Target | E2bln | E3bln |
| Avg yield | 1.799% | 1.806% |
| Previous | 1.834% | 1.816% |
| Bid-to-cover | 1.73x | 1.68x |
| Previous | 3.06x | 1.28x |
| Bid-to-offer | 1.64x | 1.39x |
| Previous | 2.66x | 1.02x |
| Previous date | Jun 23, 2025 | Jun 23, 2025 |
