–Adds comment from Finance Agency spokesman
FRANKFURT (MNI) – The German federal government set a 3.25% coupon
on the new 30-year Bund to be sold Wednesday, the Bundesbank announced
Tuesday.
An official from Germany’s Federal Finance Agency told Market News
International that the 3.25% coupon is the lowest coupon ever on a
30-year bond.
The formal tender offer confirmed that the government will sell E4
billion of the new 30-year issue. The sale will settle on Friday and
mature on July 4, 2042.
Bids for the auction will be due by 09:00 GMT (05:00 EDT) on
Wednesday, with results announced shortly thereafter. The issue is
strippable.
Wednesday’s auction replaces the planned re-opening of the
4.75%-coupon July 2040 Bund, which was dropped from the issuance
calender when Germany modified its issuance program heading into Q3. The
planned October re-opening of that security was also cancelled and will
not be substituted, the Finance Agency said at the time.
–Frankfurt Bureau tel.: +49-69-720 142, email: frankfurt@marketnews.com
[TOPICS: M$G$$$,M$X$$$,M$$FI$,MGX$$$]
