CZK: EUR/CZK Continues To Threaten 50-DMA
Oct-24 09:13
Bullish attempts to engineer a rebound off multi-year lows in EUR/CZK remain capped by the descendin...
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
GILT AUCTION RESULTS: 4.375% Mar-30 Gilt React: Weaker Than Previous Re-openings
Sep-24 09:13
Slightly weaker 4.375% Mar-30 Gilt sale than recent re-openings. The 0.4bp tail was a little wider than the 0.1-0.2bps seen between June and August, but in line with May’s re-opening.
- The 2.80x bid-to-cover ratio was the lowest on record for this line, and below the 3.19x average for the prior four re-openings.
- The lowest accepted price was 101.109, a shade below the 101.100 pre-auction mid. The secondary price of the Gilt has fallen a touch since the results were published, to 101.086.
ITALY AUCTION RESULTS: BTP Short Term / BTPei Results
Sep-24 09:08
| 2.10% Aug-27 BTP Short Term | 1.10% Aug-31 BTPei | 2.40% May-39 BTPei | |
| ISIN | IT0005657330 | IT0005657348 | IT0005547812 |
| Amount | E2.5bln | E1.25bln | E1.25bln |
| Previous | E3bln | E1.5bln | E1.25bln |
| Avg yield | 2.23% | 1.17% | 2.13% |
| Previous | 2.20% | 1.13% | 1.97% |
| Bid-to-cover | 1.57x | 1.67x | 1.67x |
| Previous | 1.56x | 1.51x | 1.45x |
| Avg Price | 99.78 | 99.60 | 103.33 |
| Pre-auction mid | 99.753 | 99.514 | 103.199 |
| Prev avg price | 99.82 | 99.83 | 105.52 |
| Prev mid-price | 99.801 | 99.739 | 105.447 |
| Previous date | 26-Aug-25 | 24-Jul-25 | 25-Sep-24 |
GERMAN AUCTION PREVIEW: 2.50% Nov-32 Bund
Sep-24 09:07
This morning, Germany will reopen its on-the-run 7-year 2.50% Nov-32 Bund (ISIN: DE000BU27014) for E4bln.
- The launch auction of the line on August 27 was very soft with only E3.170bln of bids received for the intended E4.0bln transaction. Today’s auction will be for the same E4bln size but we note that in Q4 there will only be one auction with a smaller E3bln size, on October 21. If there was more flexibility in the DFA’s funding programme we expect today’s auction would have been downsized after the first was held, too.
- Specifically, the August opening saw a bid-to-cover of 1.19x and a bid-to-offer of 0.79x after desks pointing to the potential for softer demand ahead of the auction, with the 7-year area falling between the demand sweet spots of 5-year and 10-year, making for fewer natural buyers in this area of the curve. The 0.79x bid-to-offer was the joint lowest seen in the German 7-year segment since August 2022.
- Domestically in Germany, Chancellor Merz headlined earlier today, saying his government will make concrete proposals for a pension system reform this year. While not a new theme, it is worth watching the evolution of the German pension system given the potential knock on impact for flows / holdings. On data, today's IFO Business Climate index saw some broad-based underperformance.
- The next German auction will be E5bln of the 10-year 2.60% Aug-35 Bund (ISIN: DE000BU2Z056) on October 1.
- Timing: Results will be available shortly after the bidding window closes at 10:30BST / 11:30CEST.
