German 30-year Bund Sale Faces Weakest Demand since 2011

Germany has sold 30-year debt at a negative yield for the first time, although demand at Wednesday’s auction was weak as some investors balked at the prospect of paying to tie up their cash for three decades, the Financial Times reported. The sale of a new bond maturing in 2050 priced with a yield of minus 0.11 per cent, roughly in line with yields in the secondary market. German 30-year bonds have sunk into negative territory in recent weeks as investors pile into safe assets in anticipation of a revival of the European Central Bank’s bond-buying quantitative easing programme. The bond is the first German 30-year debt to be sold without coupon payments, meaning investors who hold it to maturity get nothing back until 2050. However, the auction attracted only €869m of bids for up to €2bn of debt on offer. Read more

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