(Bloomberg) — After the biggest weekly rise in German and French yields for two months, bond auctions from both nations totaling 13.5 billion euros ($16bn) are due next week.
France’s offering is its first in mid-August since 2001. It follows just one week after Italy broke with tradition by selling bonds worth 6.75 billion euros in the middle of the month. The auctions come as countries grapple with increased funding needs created by measures to offset the economic impact of the coronavirus.
Such is the rise in France’s requirement — estimated at 138 billion euros by Citigroup Inc. strategists — that it exceeds the value of the ECB’s bond-buying measures by 20 billion euros, according to the same analysis.
The bank’s research also finds that Germany is in an even worse predicament, with its shortfall estimated at 193 billion euros.
Even so, this week’s selloff means strategists at Commerzbank AG,