Belgium €2.7 Bn Bond Auction Results: Bid To Cover Drops, Yields Jump
Belgian bund spreads this morning are modestly tighter, at 81 bps, down 6 bps on the day, after Belgium completed a "successful" bond auction, which was no doubt intermediated by the ECB, as has been the case in all the problematic European bond issues over the past six months. As to how successful it was, the broad drop in the Bid To Cover, coupled with the surge in interest rates, especially in the 3 year, leaves quite a few open questions. Below are the results.
- €0.752bln, 4.25% 28-Sep-13, bid/cover 3.09 vs. Prev. 3.39 (yield 1.599% vs. Prev. 0.933%)
- €0.805bln, 2.75% 28-Mar-16, bid/cover 2.80 vs. Prev. 2.69 (yield 2.503% vs. Prev. 2.322%)
- €1.190bln, 3.75% 28-Sep-20, bid/cover 2.39 vs. Prev. 2.55 (yield 3.26% vs. Prev. 3.137%)