BONDS: Italy vs Germany

Equities dips and Bond goes bid following headlines from the Kremlin.

• "No concrete plans on Biden/Putin meeting."
• ""Premature' to organise Biden-Putin summit on Ukraine."

• Slovakia will come to the market today to issue a total E377.2mln of SlovGB; E100mln of each of the 0.25% May-25, 0.375% Apr-36 and 2.00% Oct-47 SlovGB and E77.2mln of the 1.00% Oct-30 SlovGB.
• On offer will be:
  • 0.25% May-25 SlovGB. ISIN: SK4000017158.
  • 1.00% Oct-30 SlovGB. ISIN: SK4000017059.
  • 0.375% Apr-36 SlovGB. ISIN: SK4000018958.
  • 2.00% Oct-47 SlovGB. ISIN: SK4120013400.
• Auction history: This will be the second reopening of the 3-year 0.25% May-25 SlovGB, which was launched via syndication on May 6 2020, issuing E2bln at an average yield of 0.350% at its launch. The bond was reopened for the first time on May 17, 2021, issuing E119mln at an average yield of -0.396%, resulting in a bid-to-cover of 2.08x.
• The 1.00% Oct-30 SlovGB was launched via syndication on April 7, 2020, where E1.5bln was issued at an average yield of 1.052%. The bond has since been reopened ten times, with auction sizes decreasing over the last year. The most recent two reopenings were in November and October 2021, which saw issuance volumes of E79mln and E76mln respectively. The November reopening saw an average yield of -0.071% and bid-to-cover of 2.22x, whilst the October auction resulted in an 0.085% average yield and a high bid-to-cover reaching 4.17x.
• Today’s auction will see the fifth reopening of the 0.375% Apr-36 SlovGB, which was launched via syndication in April 2021, where E1.5bln was issued at an average yield of 0.435%. The first three reopenings were around the E100mln mark, whilst the most recent auction on January 17 this year saw a larger E173mln issued. The most recent January auction resulted in an average yield of 0.650% and 1.25x bid-to-cover. The reopening before was on November 15, 2021, resulting in an average yield of 0.376% and bid-to-cover of 2.88x.
• The 2.00% Oct-47 SlovGB saw six reopenings in the last year, with auction sizes ranging from E99-144mln. The bond has been reopened once this year for a smaller nominal of E74mln on January 17, resulting in an average yield of 0.917% and bid-to-cover of 1.42x. The previous reopening was in September 2021, where E110mln was issued at a 0.853% average yield and 1.70x bid-to-cover.

• Timing: Results will be available shortly after the auction closes at 1000 GMT / 1100 CET.