ich habe gerade eine Agenturmeldung. Die spricht doch für sich? oder (MNS ) Germany At Risk Of Having To Scrap Planned 30-Yr Bond To Germany At Risk Of Having To Scrap Planned 30-Yr Bond Top-Up> 2006-06-26 10:04 (New York) FRANKFURT (MNI) - The German government may be facing a problem in its plan to top-up in July its 30-year bond with a 4% coupon and January 2037 maturity as the issue's price approaches a critical level. The problem is that current tax law prevents the Federal Finance Agency from tapping bonds with a maturity of at least 10 years if the price falls below 94. The price is currently at 94.09. A finance agency spokesman contacted by Market News acknowledged the law's provision but declined to comment on whether this posed a problem for the planned top-up or what options the agency might have if the planned operation had to be scrapped. In its preview for Q3 2006 bond issuance published in December, the Finance Agency indicated plans to top up the January 2037 bond, which currently has an outstanding volume of E17 billion, by E6 billion in July. One conceivable option, given the fact that the January 2037 issuance volume is already large by historical standards, would be for the government to launch a new 30-year bond if it was unable to tap the existing benchmark issue. The agency spokesman refused to say whether this was a realistic option. Meanwhile, the International Financing Review (IFR) argued that a new 30-year benchmark "seems unlikely as the current issue still has plenty of time left to stay on the run." According to IFR, a more likely solution would be for the Finance Agency to tap the July 2016 bund above and beyond the E8 billion planned for July and the E7 billion pencilled in for August. Other conceivable options include resorting to inflation-linked debt or even a dollar-denominated bond, IFR suggested. The Federal Finance Agency is expected to publish its Q3 auction calendar this week.
