Germany 15-Year Bund Auction

Info

History

Chart

Impact:

Low

Next Release:

Date:

Period:

What Does It Measure?

The Germany 15-Year Bund Auction measures the government’s ability to raise funds by issuing bonds with a maturity of 15 years, assessing investor demand and market confidence in the country's fiscal stability. This event focuses primarily on interest rates, capital markets, and the overall economic climate, indicating investor sentiment through bid-to-cover ratios and resulting yields.

Frequency

The auction occurs monthly, with results typically released on the same day as the auction is conducted.

Why Do Traders Care?

Traders closely monitor Bund Auctions because they provide insights into the demand for German debt, which can influence interest rates and the euro's value. A successful auction can boost market sentiment, supporting euro appreciation and contributing to a drop in borrowing costs, while a lack of interest may negatively impact financial markets.

What Is It Derived From?

The Bund Auction is derived from the bids submitted by market participants, including institutional investors and banks, during the auction process. The auction results are calculated based on the total amount of bids received compared to the amount offered, as well as the resulting yield accepted by the government.

Description

Bund Auctions can vary in their preliminary and final reports, where the preliminary data reflects the initial auction results announced shortly after the auction closes, subject to revision, while the final report provides a confirmed overview of the results and is usually published days later. The auction typically uses a competitive bidding method, which allows investors to specify the yield they are willing to accept, guiding the issuance rates based on market conditions.

Additional Notes

The Bund Auction is often viewed as a leading economic indicator for both the German and broader European economic outlook, reflecting confidence in fiscal policies. It is a coincident measure, closely aligned with present economic conditions, and should be compared with similar bond auctions in other countries to gauge relative investor sentiment.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise