July 21, 2010 / 9:39 AM / 10 years ago

Germany sells 3.19 bln euros of new 30-year bonds

LONDON, July 21 (Reuters) - Germany issued 3.19 billion euros of a new benchmark 30-year bond on Wednesday, drawing total bids below the 4 billion euros the debt management office issued.

The bond offered a coupon of 3.25 percent —the lowest ever for an ultra-long euro zone bond.

The average yield at the sale was 3.33 percent, close to the rate that similar maturity bonds were trading in the secondary market bonds. The Bundesbank retained 0.8 billion euros of the issue. [ID:nTAR001765]

“This was a disappointing auction but not a reason to be worried. The yield was higher but I think that there was nowhere near enough concession building before the sale and now investors will be trying to buy the Bund even more cheaply in the secondary market,” said Michael Leister, strategist at West LB in Dusseldorf. [ID:nLDE66K0SC]

Peripheral issuer Portugal will later sell up to 1.25 billion euros of treasury bills, ahead of the 4.5 billion euro redemption of bills maturing on July 23.

Portugal successfully sold longer-dated bonds last week and other peripheral states have found ample demand for their debt at recent auctions, though investors have sought elevated yields to buy the paper.

Germany will also issue 1.0 billion euros of inflation-linked Bundei bonds later in the session.

Reporting by William James

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below