FINANCIALS: Rabobank - New Issue  - £ B'Mark 6NC5 Sr Non-Pref Green - FV

German GDP fell 0.1% Q/Q in Q4 2024 according to Destatis' preliminary estimate. That follows Q3's +0.1%, and brings total 2024 GDP growth to -0.2% Y/Y on a non-adjusted basis (in line with consensus, following -0.3% in 2023) and calendar-adjusted basis (-0.1% 2023).

• As drivers behind the full-year contraction, Destatis cited "increasing competition for the German export industry in important sales markets, high energy costs, persistently high interest rates, but also an uncertain economic outlook".
• Across gross value added by sector, manufacturing and construction stand out negatively at -3.0% and -3.8% Y/Y, respectively. Services was overall positive at +0.8%, underpinned by the "public services, healthcare, education" category at +1.6%.
• Productivity was weak, with GDP per employee at -0.4% Y/Y (-1.0% 2023), and GDP per hour worked at -0.1% Y/Y (-0.6% 2023).
• Final data containing more detail are to be released in the coming weeks.
• For 2025, MNI's collation of sellside analysts stands at a median of +0.3% Y/Y - having been downwardly revised by 0.2pp during the last three months. 

The 0.9bp yield tail is below the 1.3bp tail seen at the Dec 11 re-opening, but still sits within the range of the last four auctions (0.8-1.3bps). We had flagged the risk of a relatively wide tail ahead of the auction, given the recent volatility in UK markets and the slightly larger auction size (GBP4bln vs GBP3.75bln prior).

• The bid-to-cover ratio of 2.80x is below the five previous re-openings of the 4.25% Jul-34 gilt (prior 5 auction average of 2.94x).
• The lowest accepted price of 95.703 was below the 95.7535 pre-auction mid price.
• Limited reaction in Gilt futures following the auction result, currently +78 ticks today at 90.03.

FX Exchange traded Weekly Option:

• EURUSD (24th Jan) 1.0600c, sold at 0.00010 in 1.3k.