The German government is set to issue €5.5 billion worth of inflation-linked bonds next week. They will be the first linkers issued by Germany.The German finance agency, responsible for issuing German government bonds and managing the federal debt, will issue 10-year bonds linked to the eurozone inflation ex-tobacco index.
The agency said it would retain €500 million of the issue to maintain a liquid secondary market. Later issues may raise the final volume to between €10 billion and €15 billion and will be sold either via syndication or auction.
The agency said it wanted to create a liquid market in linkers by issuing bonds with "benchmark maturities". Linkers could become "part of the regular auction process", the agency added.
More on Structured Products
Move follows series of structured products hires at Canadian banks
The pros and cons of obtaining diversification through multiple counterparties
Potential for early kick-out on Russell 2000 and iShares Emerging Markets ETF
Six-year product exploits low correlation between sectors
Sign up for Risk.net email alerts
Nominated for two technology awards
Nominated for post trade technology award
Sponsored webinar: Collateral and counterparty tracking
Isda directors warn on fragmentation, access and liquidity - but expect problems to pass
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.