Another Semi-Failed German Bond Auction Passes Under The Radar

Earlier today Germany announced the "successful" placement of €3.195 billion in 30 Year bonds at a 3.33% Yield and a glowing 1.2 Bid To Cover.... Only if one were to take out the €805 million retained by the Bundesbank as so often happens these days, the auction was really undersubscribed. As the government sought to place €4 billion and received just €3.764 billion in total bids (of which €2.691 billion were in competitive bids and just €1.073 billion were non-competitive), there is no other way to classify the auction than a failure. And with the 'allotted at high' (or low price) coming in at 95%, there was certainly less than an enthusiastic reception for this latest auction which sported a coupon of 3.25%, the lowest coupon ever for a long-dated eurozone bond. More from Reuters here.