Let’s price in the 15/B!
Junior Macro Analyst
The result of the 15/B auction on 1 July took some market players by surprise. Previously the bond, which pays variable interest twice yearly and matures in 2015, was typically quoted at a price of above 99; indeed, the average price was around 100 at the first auction in March. However, at the latest issue the average price was only 98.06, while the lowest accepted offer was 95.5. The difference between the average price and the lowest accepted offer was unusually large, as was the discrepancy compared with the result of the previous auction.
The time has come for us to price in this bond properly!
Download the whole analysis here:
Monthly analysis - July
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