Germany Conducts First Simultaneous Auction of Three Long-Term Bonds as Eurozone Debt Supply Surges

Deep News01-14

Germany’s finance agency will, for the first time, conduct a simultaneous auction of three government bonds on Wednesday, including debt maturing in July 2042, August 2052, and August 2056, with a total issuance volume reaching €3 billion.

Hauke Siemßen, an interest rate strategist at Commerzbank, noted that this large-scale issuance, coupled with syndicated transactions from France and Ireland, could create headwinds for German government bonds.

“German government bonds have remained relatively resilient amid the flood of supply, but the market still faces persistent issuance pressure today.” France plans to issue a new 20-year OAT bond via a syndicate, while Ireland will simultaneously issue a new 10-year bond.

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