IFR auction review: Germany taps EUR1.08bn 5/36 Bund -0.06%, new standards of failure

We fretted that the bounce into the 10:30 GMT deadline for the 5/36 Bund tap complicated the process after an already tricky setup, and that has proven well founded.

€0.980bn 5/36 Bund -0.06%, b/c 1.1, BDF 51.0% (prev 0.02%, cover 1.28, BDF 24.6% on October 13)

Indeed, from the perspective of total bids coming in vs the targeted amount, we now have a new worst-ever auction, with just 54% drawn against the €2bn target. The prior worst showing just came in October for the inaugural tap of the 8/31 Green Bund. Prior to that and it was way back in 1999 (70.36% for a 10-year tap, €2.94bn bids coming in against a €4bn target).

The €1.08bn total bids compares to an average of €1.99bn for the last three 15-year taps, each of which were also technical failures...