Germany Plans to Cut 2017 Debt Sales Amid Balanced-Budget Push
- Gross debt issuance to decline by nearly 11 percent in 2017
- Drop in issuance to be led by shorter maturities, draft shows
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German Chancellor Angela Merkel’s government plans to pare gross debt sales by almost 11 percent next year compared with 2016 as it pledges to balance the budget for the fourth year in a row.
The federal government’s 2017 issuance will drop to 185.2 billion euros ($209 billion) from an expected 207.2 billion euros this year, according to the draft budget published on the lower house of parliament’s website. German bonds rose for the first time in three days, with the 10-year yield falling two basis points, or 0.02 percentage point, to minus 0.05 percent.