Germany saw enhanced demand for its zero-interest bearing two-year debt at an auction on Wednesday despite a slight increase in the cost.
The country raised EUR 4.005 billion of its zero-coupon Federal Treasury note due June 2014 against the EUR 5 billion target set for the sale, Bundesbank said. The debt, which was first sold in May, attracted bids totaling EUR 7.595 billion.
The yield on the 2-year debt rose to 0.10 percent from 0.07 percent in May. The bid-to-cover ratio, which indicates demand, climbed to 1.9 from 1.7 as investors sought a safe haven given the worsening situation in Spain and the worrying prospects for Italy.
The amount set aside for secondary market purposes was EUR 995 million, which is 19.9 percent of the offer. This compares to the 8.9 percent retention rate in the May sale.
Amid rising worries that Spain may lose access to the financial market, clearing house LCH Clearnet raised the margin for trading in the country's bonds, yesterday. The margin is the extra amount that clients must keep in their account. The margin charged on 10-15 year Spanish debt was hiked to 14.7 percent from 13.6 per cent.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.