Germany Pays Less Than 1% for 10-Year Funding at Auction
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Germany auctioned 10-year bonds to yield less than 1 percent for the first time, reflecting Europe’s economic quagmire and the possible steps the European Central Bank will take to engineer a recovery.
Investors bought 4.1 billion euros ($5.2 billion) of the securities, accepting record-low returns until August 2024. While the reduction in borrowing costs is good news for the German treasury it highlights speculation the ECB will strengthen its armory of stimulus measures by purchasing member nations’ sovereign bonds.