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Strong demand for German 5-year bonds despite low interest
Jan 11, 2012, 12:46 GMT
Frankfurt - Demand ran high Wednesday for a German government issue of five-year bonds, although the average interest rate that was bid was just 0.9 per cent.
The German Finance Agency said in Frankfurt it raised 3.15 billion euros with the issue. The interest rate matched the current yield on German five-year bonds on secondary markets.
The auction was a fresh sign that the government in Berlin is regarded as a solid issuer at a time when a string of eurozone governments must pay huge premiums to borrow.
The issue was oversubscribed, with 2.8 times as much money offered as required.
On Monday, the same issuer achieved a negative interest rate on bonds with a six-month term as investors sought a safe haven for their money.
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