Investing.com - Germany saw borrowing costs fall to a record low at an auction of 10-year government bonds on Wednesday, as sustained concerns over the handling of the sovereign debt crisis in the euro zone continued to boost demand for safe haven bunds.
Germany’s Treasury sold EUR4.15 billion in 10-year government bonds maturing in July 2022 at an average yield of 1.31% earlier in the day, down from 1.52% at a similar auction last month.
Demand was stronger from last month’s debt sale, with bids exceeding supply 1.50 times, compared to a "bid-to-cover" ratio of 1.40 in June.
The country planned to sell EUR5 billion in 10-year debt.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
Following the auction, the euro held on to gains against the U.S. dollar, with EUR/USD rising 0.2% to trade at 1.2275.
European stock markets remained mixed in choppy trade. The EURO STOXX 50 was flat, France’s CAC 40 declined 0.5%, Germany's DAX rose 0.1%, while London’s FTSE 100 shed 0.35%.
Germany’s Treasury sold EUR4.15 billion in 10-year government bonds maturing in July 2022 at an average yield of 1.31% earlier in the day, down from 1.52% at a similar auction last month.
Demand was stronger from last month’s debt sale, with bids exceeding supply 1.50 times, compared to a "bid-to-cover" ratio of 1.40 in June.
The country planned to sell EUR5 billion in 10-year debt.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
Following the auction, the euro held on to gains against the U.S. dollar, with EUR/USD rising 0.2% to trade at 1.2275.
European stock markets remained mixed in choppy trade. The EURO STOXX 50 was flat, France’s CAC 40 declined 0.5%, Germany's DAX rose 0.1%, while London’s FTSE 100 shed 0.35%.