Germany's ultralong bond auction sees strong demand, with a 30-year bid-to-cover ratio surging to 3.6

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智通财经2026/08/26 09:41

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On Wednesday, the Bundesbank auctioned approximately 900 million euros of 15-year federal bonds with a coupon of 2.60%. The winning yield was 3.50%, about 21 basis points higher than the previous auction for a similar bond (3.29%). The bid-to-cover ratio was 2.0 times, unchanged from the last auction.
On the same day, approximately 980 million euros of 30-year federal bonds with a coupon of 1.25% were auctioned. The winning yield was 3.68%, a slight increase of about 3 basis points from the previous figure of 3.65%. The bid-to-cover ratio surged from 1.3 times to 3.6 times, indicating exceptionally strong demand for the long end.
The surge in the bid-to-cover ratio for the 30-year bond was the most notable feature of the day, suggesting that despite yields trending higher, investor appetite for ultra-long-duration German bonds has significantly strengthened—likely to lock in higher coupon returns or to speculate on the peak of interest rates.
The increase in yield for the 15-year bond was notably larger than that for the 30-year bond, causing some flattening of the yield curve. The market continues to reprice the mid-term rate path.
Robust demand for Germany's ultra-long bonds provides a positive signal to the eurozone bond market. Going forward, market sentiment for auctions of non-core government bonds such as Italy and France should be monitored, as well as the ongoing impact of ECB policy prospects on long-end pricing.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Germany's ultralong bond auction sees strong demand, with a 30-year bid-to-cover ratio surging to 3.6

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