German debt agency says 10-year bond auction "good"

Reuters News
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Posted: Apr 11, 2012 6:53 AM
German debt agency says 10-year bond auction "good"

BERLIN (Reuters) - Germany's debt agency said on Wednesday the result of the sale of its new 10-year Bund was good given the context of slightly increasing market uncertainty and it had retained what it intended to.

Germany sold 3.87 billion euros of 10-year government bonds in an auction which was technically uncovered - drawing less demand than the amount on offer - after Berlin offered the lowest coupon on record for this maturity.

"Germany achieved a good result in economic terms given the context of slightly higher market uncertainty," the debt agency said in a statement. "Thirty six of the 39 members of Germany's bidding group participated in the auction."

Germany retained 1.13 billion euros in the auction, 23 percent of the total amount. Debt agency chief Carl Heinz Daube said in an interview last November that Germany usually retained 20 percent on average.

"That is the volume that we aimed for, today we nearly exactly hit the mark," a spokesman for the agency said. "There is no lack of interest on the part of investors."

(Reporting By Sarah Marsh and Klaus Lauer)