Germany's six-month borrowing costs declined at an auction on Monday in the first debt sale by a euro area nation after the region's governments agreed on a bailout for Spain's banking sector.
The country raised EUR 3.53 billion from the sale of its Treasury discount paper, or Bubills, due December 5, the Bundesbank said. The target set for the sale was EUR 4 billion. The auction attracted bids totaling EUR 4.397 billion. The lowest accepted price was 99.99300 percent.
The yield on the 6-month debt fell to 0.0070 percent from 0.0371 percent in the previous sale on May 14. The bid-to-cover ratio that indicates demand also dropped to 1.2 from 1.5.
Demand for the German debt remains strong as investor seek safe havens amid the lingering concerns over the debt crisis in the Eurozone.
by RTT Staff Writer
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