Investing.com - Germany saw borrowing costs edge higher at an auction of five-year government bonds on Wednesday, after the nation’s Constitutional Court allowed Europe’s permanent bailout fund to be ratified with conditions, reducing demand for safe haven assets.
Germany’s Treasury sold EUR3.97 billion in five-year government bonds maturing in October 2017 at an average yield of 0.61% earlier in the day, up from 0.31% at a similar auction last month.
Demand was lackluster, with bids exceeding supply 1.4 times, compared to a “bid-to-cover” ratio of 2.6 in August.
The country planned to sell EUR5 billion in five-year debt.
Following the auction, the euro remained higher against the U.S. dollar, with EUR/USD adding 0.26% to trade at 1.2888.
Meanwhile, European stock markets held on to gains. The EURO STOXX 50 rose 0.9%, France’s CAC 40 advanced 0.7%, Germany's DAX added 0.9%, while London’s FTSE 100 eased up 0.2%.
Germany’s Treasury sold EUR3.97 billion in five-year government bonds maturing in October 2017 at an average yield of 0.61% earlier in the day, up from 0.31% at a similar auction last month.
Demand was lackluster, with bids exceeding supply 1.4 times, compared to a “bid-to-cover” ratio of 2.6 in August.
The country planned to sell EUR5 billion in five-year debt.
Following the auction, the euro remained higher against the U.S. dollar, with EUR/USD adding 0.26% to trade at 1.2888.
Meanwhile, European stock markets held on to gains. The EURO STOXX 50 rose 0.9%, France’s CAC 40 advanced 0.7%, Germany's DAX added 0.9%, while London’s FTSE 100 eased up 0.2%.