Germany 30Y DBR 8/56 Tap — IPT ~MS+40-41 vs FV MS+39
Summary
Summary. Germany has mandated joint leads for an EUR 3.5bn no-grow syndicated tap of the existing DBR 2.9% 08/15/56. The line currently trades near 3.57% mid yield, equivalent to roughly MS+39bp on the 30Y EUR swap curve, sitting flat to the long-end Bund cluster from 8/52 to 8/54. Expected launch guidance is likely to print at a 1-2bp concession, with re-offer most plausibly landing in the MS+40 area. Retention will be set separately by the Finanzagentur.
Deal recap
| Item | Detail |
|---|---|
| Issuer | Federal Republic of Germany (Aaa/AAA/AAA) |
| Format | DBR senior unsecured — tap of existing line |
| Size | EUR 3.5bn no-grow (may include retention) |
| ISIN / maturity | DE000BU2D012 / 15 Aug 2056 |
| Coupon (existing) | 2.90% |
How we got FV
Three anchors: the bond's own secondary mid, the surrounding Bund long end, and 30Y EUR mid-swaps.
Curve check — 8/56 vs neighbours
| Bond | ~Tenor | Mid yield | vs 8/56 |
|---|---|---|---|
| DBR 0 08/15/52 | 26.3y | 3.567% | −0.5bp |
| DBR 1.8 08/15/53 | 27.3y | 3.566% | −0.6bp |
| DBR 2½ 08/15/54 | 28.3y | 3.567% | −0.6bp |
| DBR 2.9 08/15/56 | 30.3y | 3.572% | — |
The long end is essentially flat — four benchmarks inside a 1bp band — so the 8/56 print is its own anchor; no curve roll-up to extract.
Asset swap level
| Metric | Level |
|---|---|
| DBR 8/56 mid yield | 3.572% |
| 30Y EUR mid swap | 3.176% |
| ASW (bond − swap) | +39.6bp |
FV: ~3.57% / MS+39bp / 87.36 mid.
Expected IPT and landing
| Stage | Likely level | Approx. price |
|---|---|---|
| IPT / launch guidance | MS+40-41 area | ~87.20 |
| Final re-offer | MS+39-40 | ~87.20-87.30 |
| Implied concession | ~1bp | ~10-15 cents |
The familiar pattern for syndicated Bund taps: open the book a touch wide, pull ~1bp at re-offer. Anything inside MS+39 implies real momentum; anything outside MS+41 implies the day is heavier than the curve currently suggests.
This post sets out observations only. It is not investment advice, an offer, a solicitation, or a recommendation to buy, sell or hold any security. Levels are indicative and rounded for readability. Final terms will be set by the joint lead managers at pricing.
