Germany Sells Notes at Sub-Zero Yields as Mizuho Eyes ECB Limits
- Bundesbank could reach some purchase limits by April: Mizuho
- Germany sold five-year notes at lowest yield since April
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Germany sold five-year government debt with a negative yield for the first time since April amid speculation that the Bundesbank may reach its limit on some bond purchases months before the intended completion of the European Central Bank’s stimulus plan.
Benchmark German 10-year bunds advanced along with their euro-area peers as European stocks fell for a third day, boosting demand for fixed-interest assets. The ECB tweaked its 1.1 trillion-euro ($1.3 trillion) quantitative-easing program last month by raising its cap on some of the bonds it can buy to 33 percent per security from 25 percent, President Mario Draghi said on Sept. 3. The increase was applied to those bonds not bound by collective-action clauses, or CACs.