Germany paid less for one-year debt at an auction on Monday as fears of a Greece exit from euro area keep rising.
The country raised EUR 2.910 billion from the sale of its Treasury discount paper, or Bubills, with 12 months maturity, Bundesbank said. The target set for the sale was EUR 3 billion. The auction attracted bids totaling EUR 6.170 billion.
The average yield on the 1-year debt fell to 0.0264 percent from 0.0743 percent in the previous sale on April 23. The bid-to-cover ratio, which indicates demand, dropped to 2.1 from 2.3.
German Finance Minister Wolfgang Schaeuble and his French counterpart Pierre Moscovici will meet in Berlin later today. During a weekend summit at Camp David in the U.S. state of Maryland, leaders of the G8 nations said they support Greece remaining in the Eurozone. They also welcomed the ongoing discussion in Europe on how to generate growth alongside a firm commitment on fiscal consolidation.
by RTT Staff Writer
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