Failed German 2-year Bond Auction First Since November

A sale of two-year German government bonds on Tuesday was the first technically failed auction of its maturity since last November, Germany’s debt management agency said.

Just over 3 billion euros of bids were received for Germany’s two-year auction earlier on Tuesday, below the 4 billion euro target.

That makes it the first technical failure at an auction of two-year bonds since November, a spokeswoman for Germany’s debt management office told Reuters.

She said the last failed auction for a German bond of any maturity was a five-year bond sale earlier this month.

The premium investors demand to hold French bonds fell to a two-month low this morning. An opinion poll showed centrist Emmanuel Macron has more than a 20 point lead over far-right, eurosceptic Marine Le Pen for the final vote in May. Francois Fillon is also seen comfortably beating Le Pen in a run-off despite scandals surrounding the Conservative candidate.


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell