DAILY BOND AUCTION PREVIEW: Supply today comes from Germany and the UK


Last week, the ECB allotted EUR 1.719bln in its 7-day MRO.

AUCTION PREVIEW: German EUR 500mln 0.1% 2026 I/L and EUR 500mln 0.50% 2030 I/L Auction

Eurozone gross supply this week around EUR 6.5bln, from Austria and Germany. There are no significant coupon and redemptions out of Europe, though analysts note that there are around EUR 17bln next week, including a EUR 13bln redemption from Germany, and a EUR 4bln of coupons from Italy, Austria and Ireland.

In terms of historical data:

0.1% 2026 prev. b/c 1.6 and yield -0.9%
0.50% 2030 prev. b/c 3.7 and yield -0.74%

Bids are submitted by 1030GMT and results are published shortly after

AUCTION PREVIEW: UK GBP 2.25bln 1.5% 2047 Gilt Auction

Analysts note that there are around GBP 17bln of cash flows due on Wednesday (ex-DMO and BOE holdings), including around GBP 4bln of coupon payments.

The previous auction saw b/c at 1.65x, a tail of 1bps, with the average yield at 1.806%.

The UK is set to sell GBP 2.25bln of 2047 gilts; bids are submitted by 1030GMT and results are published shortly after. There is a modest degree of natural concession since the previous tap, IFR’s analysts say, but not much in the way of relative value on this part of the curve. IFR points out that demand is inherently strong for longer dated debt due to institutional liability requirements.