GERMANY: Coalition Negotiations To Get Underway w/Focus On Bundestag Session

Putting that syndication size in context. It's the largest ever at GBP13bln.

• Previous largest was GBP12.0bln in May 2020 (10-year). And larger than the GBP11.0bln sold in June 2024 (the previous 10-year).
• It's also a record book size for a gilt syndication - the record being the GBP119.3bln for the 15-year syndication last month.
• Question is now... There's only GBP1.2bln in the unallocated bucket. So where is the other GBP1.8bln coming from? Smaller medium-dated bucket could easily accommodate GBP1.0bln or so.
• But will there be more taken from elsewhere or will this mean a much smaller auction next month of the gilt issued today?

• A full spin Cycle in the Yen, after spiking earlier with no clear trigger, it is now back at session lows against the EUR, GBP, and the USD.
• As we have previously mentioned, crosses are still mostly within ranges, and the USDJPY would need a test all the way to 152.54 to just test Yesterday's high.