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2026-05-27 17:50:20
[German Bond Auction Shows Maturity Divergence Again: 30-Year Bonds Close Strong with Zero Spread, 15-Year Bonds Slightly Weaken] ⑴ Germany completed its auction of 15-year and 30-year government bonds on Wednesday, with a total issuance of €1.549 billion. Overall demand was good. The 30-year bonds, issued in additional issuance, performed particularly strongly, with an issuance size of €787 million, an average yield of 3.500%, 0.5 basis points lower than the pre-issuance quote, a zero tail spread, and a bid-to-cover ratio of 1.85. ⑵ The 15-year bonds issued totaled €763 million, with an average yield of 3.300%, 0.2 basis points higher than the pre-issuance quote, a 3-pip tail spread, and a bid-to-cover ratio of 1.54. This tranche performed slightly weaker at the close of bidding, with yields slightly higher than the pre-issuance quote range. (3) The two auctions continued the maturity divergence pattern seen in previous German bond issuances: the 30-year ultra-long-term bonds attracted strong institutional subscriptions with their strong performance of negative spreads and zero tails, while the 15-year bonds, although still at a reasonable coverage level, showed positive spreads and positive tails, indicating that investors were relatively cautious about allocating to medium-term bonds.
