Germany Faces Soft €3.8 Billion Bond Sale as 30-Year Yield Hits 3.79%
Updated
Updated · Yahoo Finance UK · Aug 21
Germany Faces Soft €3.8 Billion Bond Sale as 30-Year Yield Hits 3.79%
3 articles · Updated · Yahoo Finance UK · Aug 21
Summary
Germany sold just €3.8 billion of a planned €6 billion 10-year bond sale, underscoring weak demand as borrowing costs climb.
The pressure intensified after Germany's 30-year yield hit 3.79% on Wednesday—its highest since 2011—with inflation fears linked to the Iran war adding to the selloff.
Berlin is also bringing supply forward: ING said Germany announced a 30-year syndication earlier than many expected, adding to post-summer issuance pressure.
Record borrowing needs are driving the move. Commerzbank sees German gross bond supply rising to €400 billion in 2027 from €349 billion this year as defence and infrastructure spending ramps up.
The strain extends across the euro zone, where Barclays expects record gross issuance of €1.54 trillion next year, keeping yields elevated and lifting borrowing costs for governments, companies and households.