FRANKFURT (MNI) – The German federal government sold E4.945 billion
in a top-up of its 1.75%-coupon two-year notes (Schatzanweisungen)
maturing in June 2013, the Bundesbank announced Wednesday.

The bid/cover ratio of 1.4 (excluding retention) was lower than the
1.9 b/c ratio at this security’s initial offering on May 11.

The average yield on the sale was 1.57%, down from the 1.79% yield
last month.

The minimum price of the top-up tranche was 100.35, while the
average weighted price was 100.356. All of the bids at the minimum price
were accepted.

There were a total of E7.055 billion in bids for the top-up sale,
including E3.985 billion in competitive bids and E3.07 billion in
non-competitive bids. The government accepted 100% of the
non-competitive bids.

The government retained E1.055 billion of the issue for its open
market operations, bringing the total volume of the top-up tranche to E6
billion, as expected.

Including the E7 billion outstanding of this issue, the top-up
boosts the volume of the June 2013 Schatz to E13.0 billion.

The new tranche will settle on Friday, June 17. The issue matures
on June 14, 2013.

— Frankfurt bureau: +49 69 720 142; email: —