An auction of Germany's five-year federal notes on Wednesday saw the demand for the safe haven debt decline just hours after the country's top court cleared the ratification of the Eurozone's permanent bailout fund.
The country raised EUR 3.972 billion from the sale of its new 5-year Federal Notes, which are also known as Bobls, against a target of EUR 5 billion, Bundesbank said. The auction for the October 2017 instrument attracted bids totaling EUR 5.474 billion.
The average yield on the five-year debt rose to 0.61 percent from 0.31 percent paid for a security of similar maturity on August 1. The bid-to-cover ratio, which indicates demand, declined sharply to 1.4 from 2.6.
Germany also sold EUR 578 million of its April 2023 inflation-linked bonds. The yield was -0.27 percent and the offer was covered 1.9 times.
Elsewhere today, Italy witnessed a decline in borrowing costs at a debt auction.
The material has been provided by Instaforex Company - instaforex.com
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