EMISSIONS: German EUA CAP3 Auction Drops Lower, Cover Ratio Rises

• As seen in recent auctions of the 0.875% Jul-33 Green Gilt, the lowest accepted price (LAP) is below the pre-auction mid-price.
• The price of the gilt fell to the LAP of 74.744 following the auction result but has moved but up to the average price of 74.873 at the time of writing.
• Similar move lower and then above the pre-auction price seen in gilt futures (but it's only been a 9 tick range post-bidding window so minor moves).

Correction: Date in final sentence. Marine Tondelier, leader of the environmentalist Ecologists, has added her voice to the wave of criticism from the left towards PM Francois Bayrou regarding his comments on immigration from 27 Jan. In an interview with LCI on Monday, Bayrou said “Contributions from foreigners are a positive for a people, so long as they remain proportionate. But as soon as you get the feeling of flooding, of no longer recognizing your own country, its lifestyle and its culture, the feeling of rejection appears.”. 

• Philippe Brun, a deputy from the centre-left Socialist Party (PS) said on Sud Radio earlier that the PS "suspended our negotiations [on the budget] because the words from the Prime Minister were not dignified," adding that he hopes talks will resume. Tondelier has raise the prospect of bringing a censure motion against the Bayrou gov't over the comments, saying "I don't need him to say something stupid on LCI about immigration to decide to vote for censure,".
• The furore comes at an inopportune time with regards to the budget. The Joint Committee on the Budget meets tomorrow (Thurs 30 Jan) from 0930CET. The Committee includes senators and deputies, and will seek agreement between the two chambers on a common text. In the event an agreement is reached, the conclusions will be presented to the Assembly then the Senate on Monday 3 Feb. If an agreement is not forthcoming and Bayrou is forced to use Article 49.3 of the constitution to force a budget through without a vote, the presentation will take place Thursday 6 Feb.