This morning the news of the placement by the German federal government of six-month Treasury bonds for over 2,6 billion euros. What is most striking is the average yield of 0,0005%, considered a new all-time low. The Bundesbank is also planning a second tranche of 325 million euros before Christmas, thus reaching a total loan of 3 billion euros.
This dynamic does nothing but confirm two elements: the nature of "safe haven" attributed to German bunds and the strong uncertainty that guides the actions of economic operators.
On the other hand, we must underline the difficulties shown by the Bundesbank in the placement of multi-year Bunds, over 35% of which remained unsold. The trend in the subscriptions of German bonds therefore describes not only the uncertainty of small savers, but also the very relative value of the Bund/BTP spread.
In fact, this indicator reflects the market imbalance generated precisely by German securities, which have recently achieved even negative real yields on medium-long term maturities.
