Demand for German short-term debt auction remains stable, with the average yield on 12-month Bubills slightly declining

(1) Data released by the Bundesbank on Monday showed that in the 12-month government bond supplementary issuance conducted that day, a total of 2.78 billion euros of bonds were sold, with market subscription demand remaining stable. (2) The average yield at this auction was 2.502%, down from 2.562% for the previous issue of the same maturity, reflecting a slight adjustment in market pricing of the European interest rate outlook in the short term. (3) The bid-to-cover ratio remained at 1.4 times, the same as the previous auction, indicating that investors’ appetite for allocating German short-term government bonds has not changed significantly, with the demand base still relatively solid. (4) Overall, the results of this issuance suggest a good level of market acceptance for German short-term debt instruments. Ongoing attention should be paid to the impact of shifts in the European Central Bank’s policy path expectations on subsequent short-term bond auction yields and demand.