German 10-year yield falls to record low at auction

Wednesday, 12. June 2019 12:38

Germany's government sold an additional, €2.25 billion tranche of debt maturing in February 2029. After the average yield slipped below zero in March for the first time since 2016, on Wednesday the measure sunk to a record low 0.24% under neutral. The yield hit an all-time low of 0.26% in negative territory last week in the markets. The bid-to-cover ratio at the sixth reopening for Bunds by the German Finance Agency came in at 1.65 compared to 1.76 from the operation conducted on May 22, when the yield landed at 0.07% under the flat line.

The yield on the two-year sovereign notes was at minus 0.68% at 12:31 pm CET, down 0.8 basis points. The ten-year benchmark decreased by 0.6 points to 0.236% under zero. The 30-year rate dropped 1.3 points to 0.371%. Corresponding futures grew by 0.01% 0.06% and 0.44%, respectively.

Italy's government bonds dropped and yields surged after an auction of BOTs expiring in June next year. Gross yield fell 5.3 points to 0.069% for the €6.5 billion package.

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