Record-breaking demand for Germany’s new ultra-long government bond
- Germany issues EUR6 billion in new 30-year Bunds with maturity in August 2054
- Deal size includes EUR1 billion issuer retention
- Final books at re-offer exceed EUR74 billion
- Spread on the new bond set at 4.5 basis points above the yield of the 1.80% August 2053 Bund
- New bond has a 2.50% coupon and priced at 99.196, with a yield of 2.537%
- Joint lead managers of the transaction: BNP Paribas, BofA Securities, Citi, Commerzbank, Credit Agricole CIB, and J.P. Morgan
Germany has successfully issued EUR6 billion in new 30-year Bunds with a maturity date in August 2054. The deal size includes EUR1 billion issuer retention, highlighting strong investor interest. The final books at re-offer for the new ultra-long government bond exceeded an impressive EUR74 billion, indicating record-breaking demand. The spread on the new bond was set at 4.5 basis points above the yield of the 1.80% August 2053 Bund, further demonstrating investor confidence. With a 2.50% coupon, the new bond was priced at 99.196, offering a yield of 2.537%. The joint lead managers of this successful transaction were BNP Paribas, BofA Securities, Citi, Commerzbank, Credit Agricole CIB, and J.P. Morgan.
Public Companies: BNP Paribas (null), BofA Securities (null), Citi (null), Commerzbank (null), Credit Agricole CIB (null), J.P. Morgan (null)
Private Companies:
Key People:
Factuality Level: 8
Justification: The article provides specific details about the issuance of new 30-year Bunds by Germany, including the deal size, issuer retention, final books, spread, coupon, and pricing. The information is presented objectively without any bias or personal perspective. However, the article lacks context and background information, which may make it difficult for readers unfamiliar with the subject to fully understand the significance of the transaction.
Noise Level: 7
Justification: The article provides information about Germany issuing new 30-year Bunds, including details about the deal size, spread, coupon, and lead managers. However, it lacks analysis or insights into the long-term trends or consequences of the issuance. It also does not provide evidence or data to support its claims. Overall, the article is mostly focused on reporting the transaction details without providing much value or actionable insights for the reader.
Financial Relevance: Yes
Financial Markets Impacted: The issuance of new 30-year Bunds by Germany may impact the bond market and potentially affect the yields and prices of other government bonds.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the issuance of new 30-year Bunds by Germany, which is a financial event that can impact the bond market.
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