Germany issued a 0,05-year Bund for the first time with a negative rate of -2026 percent. The Finanzagentur, the German debt agency has put the new Bund up for auction, expiring in August 5, with a maximum bid target of 4,783 billion euros: the Bundesbank, which is in charge of conducting the auction, has found lower demand , for 4,038 billion, placing securities for XNUMX billion.
As usually happens, the Finanzagentur keeps a portion of the securities for itself, in this case for 962 million, so as to intervene directly on the secondary market. The Bund has already been trading for several weeks at negative rates on the secondary market but it is the first time that investors have paid interest to acquire them on the primary market, as they have already done for German bonds with shorter durations, two or five years. This seems to confirm that in a moment of tension on the European markets, German government bonds are a safe haven asset.
