ENERGY: Negotiations At The Expert Level In Coming Days: Kremlin

EURIBOR FIX - EMMI/Bloomberg

• EUR001W 2.6680 0.0290
• EUR001M 2.6240 0.0080
• EUR003M 2.5160 0.0060
• EUR006M 2.4840 -0.0050
• EUR012M 2.4440 0.0200

This morning, Germany will hold its third Schatz auction of the year. On offer will be E4.5bln of the 2.20% Mar-27 Schatz.

• The size is a step down from the E5.0bln seen at the last Schatz auction on January 28 (when the line was opened), and also 500mln below recent second-time openings of Schatz lines.
• Recent Schatz auctions have passed smoothly, with solid bid-to-covers (in a 2.09x to 2.81x range since August), bid-to-offers (1.69x to 2.17x range since August) and the low prices above the secondary market mid-prices throughout 2024/5.
• For the last Schatz auction on 28 January, the bid-to-cover stood at 2.81x, while the bid-to-offer came in at 2.15x.
• The political situation in Germany is characterized by some uncertainty at the moment amid snap elections being scheduled for Sunday, February 23. TV debates have passed without material turmoil in the last couple of days and the mainstream parties are expected to be able to form a government together - so we expect no impact from that on today's auction. We are set to publish our election preview soon.
• The next German auction will be tomorrow's E4.5bln of the 2.50% Feb-35 Bund (ISIN: DE000BU2Z049), while the 2.20% Mar-27 Schatz will be reopened next on March 11, for another E4.5bln.
• Timing: Results will be available shortly after the bidding window closes at 10:30GMT / 11:30CET.

• MNI: GERMANY ZEW FEB ECONOMIC EXPECTATIONS 26
• MNI: GERMANY ZEW FEB CURRENT CONDITIONS -88.5