Germany's ten-year borrowing costs declined at an auction on Wednesday as investors demanded more safe-haven debt.
The country sold EUR 4.107 billion of its 1.75 percent July 2022 bond against the EUR 5 billion target set for the sale, Bundesbank said. The bids totaled EUR 6.128 billion. The amount set aside for secondary market operations was EUR 893.15 million.
The yield on the 10-year bond, also known as Bunds, dropped to 1.47 percent from 1.77 percent in the previous sale on April 11. The bid-to-cover ratio, which indicates demand, rose to 1.5 from 1.1.
The news of a fresh election in Greece and the possible exit of the country from the single-currency bloc have prompted investors to seek safer options. Germany's debt is top-rated.
Elsewhere, France also saw its borrowing costs fall on Wednesday in the first debt auction after President Francois Hollande's inauguration yesterday. The Agence France Tresor raised EUR 7.996 billion from the sale of 2, 3, 4 and five years debt, close to the EUR 8 billion maximum target set for the sale.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.