Investing.com - Germany saw borrowing costs ease up from a record low at an auction of 10-year government bonds on Wednesday, amid concerns over Spain’s bank bailout and ahead of this weekend’s closely watched Greek elections.
Germany’s Treasury sold EUR4.04 billion in 10-year government bonds maturing in July 2022 at an average yield of 1.52% earlier in the day, up from 1.47% at a similar auction last month.
Demand was lackluster, with bids exceeding supply 1.40 times, compared to a "bid-to-cover" ratio of 1.50 in May. The country planned to sell EUR5 billion in 10-year debt.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
Following the auction, the euro held on to gains against the U.S. dollar, with EUR/USD rising 0.23% to trade at 1.2533.
European stock markets turned lower in choppy trade. The EURO STOXX 50 dipped 0.1%, France’s CAC 40 declined 0.45%, Germany's DAX slumped 0.55%, while London’s FTSE 100 shed 0.25%.
Germany’s Treasury sold EUR4.04 billion in 10-year government bonds maturing in July 2022 at an average yield of 1.52% earlier in the day, up from 1.47% at a similar auction last month.
Demand was lackluster, with bids exceeding supply 1.40 times, compared to a "bid-to-cover" ratio of 1.50 in May. The country planned to sell EUR5 billion in 10-year debt.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
Following the auction, the euro held on to gains against the U.S. dollar, with EUR/USD rising 0.23% to trade at 1.2533.
European stock markets turned lower in choppy trade. The EURO STOXX 50 dipped 0.1%, France’s CAC 40 declined 0.45%, Germany's DAX slumped 0.55%, while London’s FTSE 100 shed 0.25%.