Weak results for the latest German government bond auction. Germany placed on the market today 3,191-year Bunds for XNUMX billion eurosI Yields climbed to highest since June at 1,52%, against the 1,42% recorded in the auction of last September 5th .
Il bid-to-cover ratio rose to 1,2 from the previous 1,1 of 5 September, but the requests were not sufficient to cover the entire amount offered. Uncertainties surrounding Spain and Greece were not enough and, with investors daunted by low interest rates, the German Treasury missed its target of placing 5 billion euros.
"Occasionally there is a technically open auction in the XNUMX-year bond segment," said Joerg Mueller, spokesman for the Federal Office of Finance, but of course "there is no risk to federal budget financing."
Demand had also been low in the previous auction: requests had reached 3,93 billion, against 5 billion of ten-year bonds for sale, and 3,61 had been placed.
The country, which usually holds 20% of its debt to sell on the secondary market, has retained 36% this time. “The data show a very volatile market, where investors react by strongly limiting purchases”, reads a note from the debt agency released after the auction.
