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Germany sold its 10-year debt with a negative return for the first time since autumn 2016, highlighting how the global sovereign debt rally began to affect primary market transactions.
On Wednesday, the government sold € 2.4 billion worth of securities at 10 years with an average yield of minus 0.05%, according to the German Finance Agency. The agency said it received 2.6 times more debt bids than it had accepted, a sign of strong demand.
While short-term issues were accompanied by a negative return, this was the first time that Germany has been selling Bunds, which had a maturity of at least 10 years, with a sub-zero yield since October 2016.
The negative return means that investors who bought at auction on Wednesday and hold until maturity are guaranteed a loss.
High-rated government bonds issued by issuers ranging from Germany to Britain and the United States have rallied sharply since the US Federal Reserve abandoned plans to raise rates this year. year. The recovery accelerated later in the week amidst gloomy data on Germany, the economic power of Europe.
Sign of the strength of the rally, the performance of the aggregated aggregate global governments Bloomberg Barclays fell 0.44 percentage points to 1.17% since a peak reached last October.
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