German bonds trade lower after long-term debt sale

Wednesday, 21. August 2019 17:46

Prices of debt securities issued by the government in Berlin were higher on Wednesday toward the end of working hours, which means yields were in the green. However, the 30-year borrowing costs equivalent was barely up after today's auction for bonds due in 2050, which brought negative yields for the first time for the long-term sovereign paper. At the time of the sale, rates advanced in market trading but investors' demand still came in stunningly poor and Bundesbank retained three fifths of the package.

On the other hand, yields on two-year notes rallied 2.3 basis points at 5:42 pm CET to a negative 0.886%, just off the daily high. The ten-year Bund benchmark was up 1.2 points at minus 0.677% while the thirty-year measure was at 0.176% under zero. Corresponding futures retreated 0.04%, 0.17% and gained 0.12%, respectively. The yields on the United Kingdom's government debt maturing in two, ten and thirty years moved marginally higher to 0.496%, 1.6 points to 0.469% and 1.1 points to 1.019%, respectively.

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