Larger size for 8/48 Bund tap may be problem

The recent history for 30-year Bund auctions has been fine, with the last four taps, including off-the-runs as well as the current 8/48, all being fully covered. Going back before that, however, and it wasn’t so long ago that they had more of a problem, with four technical failures in a row between March and June this year. For what it’s worth, note three of the last four auctions, which were all fully covered, were for only €1bn, vs today’s tap of €1.5bn (the October tap of the 7/44 was also for €1.5bn). In contrast, the four technical failures from March through June were each for €1.5bn.

(Reporting by Michael Cartine)

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