Another positive auction for Germany on the government bond market. The German Treasury has placed one-year bonds for 1,975 billion euros, once again offering a negative yield of -0,0246%, up from -0,054% offered last month. Good the question, which was 3,86 billion euros, compared to an initial offer of 3 billion. After placement the Btp-Bud spread remains stable at around 435 basis points (yields at 5,703%), while the Spanish differential is at 503.
The results of the auction arrived almost simultaneously with the latest data processed by the research institute I fo. Despite the worsening of the climate of confidence among German companies, experts exclude that Germany could fall into recession: even if a slowdown in the economy is clearly visible in the summer, GDP growth of 0,1% is forecast for the third quarter.
Chairman Hans-Werner Sinn, commenting on the second quarter Ifo data, said that “the German economy is weaker” and “for the first time in almost three years, expectations on exports are slightly negative“. Klaus Wohlrabe, Ifo analyst, pointed out that unemployment in Germany will however remain at low levels.
