Germany's bond auction on Wednesday met with slightly higher costs ahead of the election in Greece this weekend and Spain's bailout plan underway.
The country sold EUR 4.04 billion from 10-year bund auction, Bundesbank said. Investors bid for EUR 5.8 billion, exceeding the maximum target of EUR 5 billion.
The average yield rose marginally to 1.52 percent from 1.47 percent in the prior auction held on May 16.
Indicating the ability of the nation to borrow even during troubled times, demand exceeded the offer by 1.4. However, it was slightly down from the 1.5 times seen in May.
Also, the agency allotted EUR 770 million of 0.75 percent 2018 inflation-linked Federal notes. About EUR 230 million was set aside for secondary market operations.
The average yield came in at negative 0.31 percent. The bid-to-cover ratio, which indicates demand, rose to 2.2.
by RTT Staff Writer
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