Glancing at the below, the just-published results of Germany’ latest Bundesobligationen (Bobl) auction, you might think all was relatively well:
But as Marc Ostwald over at Monument Securities points out, by UK standards this was pretty much a failed auction. Germany’s debt management office has the option to retain large chunks of any auction, and they did so in this case to achieve a 1.1 bid-to-cover ratio at the cost of an 11 basis point auction tail.
So much for a European Sicherhafen (safe haven).
Ostwald’s rather schadenfreude-laden commentary:
Payback time …. after all does anyone really want to own 5-yr paper anywhere on a paltry 1.47% yield
Related link:
German Bobl Offer Seen A Difficult Sale Amid Low Yield -EasyBourse