Last 2010 German T-bill issue a success: Bundesbank
The last German debt operation this year, a two-year Bubill issue worth 1.7 billion euros (2.26 billion dollars), met with success following three undersubscribed issues, official figures showed Monday.
The German Finance Agency (GFA), which manages debt for Europe's biggest economy, received 5.735 billion euros in offers for the treasury bills and borrowed 1.715 billion euros at an annualised rate of 0.7492 percent, figures published by the central bank showed.
The GFA often borrows more than is offered and tops up its needs on secondary public debt markets.
The previous three debt issues had gone uncovered, raising some concern that the Greek and Irish debt crises might have begun to curb investor interest in wider eurozone bond operations.
Portugal is set to become the eurozone's next big test when substantial portions of its debt begin to mature early in 2011.
This year, the GFA went to public debt markets 73 times and raised 323 billion euros. Only six of those operations were undersubscribed.
Germany has the best credit position of any eurozone member, and its 10-year Bund serves as the continent's benchmark.
© 2010 AFP