Germany sells bonds at negative yield
Germany has sold €3.9 billion (£3.2 billion) of six-month bonds with a negative yield as investors continue to seek safe havens.
The Bundesbank reveals that today’s auction saw an average yield of -0.0122%. This means investors have effectively paid Berlin to lend money to Germany.
However, demand for six-month paper was down on previous auctions. The bid-to-cover ratio for today’s sale was 1.8, down from the 3.8 seen at an auction of six-month bonds in December.
The auction is the first of a series taking place in the eurozone this week. France, Slovakia, Austria, the Netherlands, Spain and Italy are set to issue new debt in the coming days.
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