FRANKFURT (MNI) – Germany will issue E59 billion in bonds and E33
billion in bills in the second quarter this year, the country’s Federal
Finance Agency said Tuesday.
The totals confirm what the agency had announced in December, and
had been widely expected by experts (see preview story on MainWire at
13:25 GMT Monday).
The agency provided precise dates for 2Q’s auctions. The first of
three new sales will be on April 14, when the agency is to issue a new
five-year Bobl with an expected volume of E7 billion. On April 28 it
will sell a 10-year Bund for a projected volume of E6 billion.
The third new sale is on May 12, when the government will a sell
2-year Schatz for a volume of E7 billion.
In addition, the government will have seven bond top-up auctions,
the first of which will be on April 7, when it re-opens the 2-year
Schatz it launched February 17.
Germany will launch six new short-term bills (“bubills”) in 2Q and
will re-open the three one-year bubills that it launched in 1Q.
The detailed calendar reiterated that the government intends to
issue E3-4 billion worth of inflation-linked bonds in the second
quarter. It also repeated that it “reserves the right to issue foreign
currency bonds, as market conditions allow.”
Experts told Market News International last week that market
conditions were ripe for a dollar issuance, but they expected that
Germany would mention nothing specific about this in its issuance
calendar. The Finance Agency had no comment.
Germany will likely issue its detailed issuance calendar for 3Q in
the last ten days of June. Should the German economy get back on the
recovery track, as it is expected to do so, the country might then be in
a position to cut total bond issuance, experts say.
–Frankfurt bureau; +49-69-720142; tbuell@marketnews.com
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