Germany fails to sell €1 billion of bonds
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Germany has sold €4.06 billion (£3.39 billion) of ten-year government debt at auction, after seeing greater demand than at the bond’s launch in November.
But close to €1 billion of bonds went unsold at this morning’s offer of €5 billion. The German Finance Agency likely retained bonds as some of the bids made were too low.
The agency received €5.14 billion in bids for the ten-year bonds. With a bid/cover ratio of 1.3, this is an improvement on the 1.1 ratio seen when the January 2022 bond was first offered on November 23.
However, the ratio is low when compared to the 2011 average of 1.54 for ten-year German bond auctions.
Today’s auction had an average yield of 1.93%, down from the previous auction’s 1.98%.
November’s auction was one of the worst on record for Germany, as the number of bids received was much worse than expected and led to close to 40% of offered bonds being retained.
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