France raises 7.963 bn euros at bond auction

5th January 2012, Comments 0 comments

France successfully raised 7.963 billion euros ($10.23 billion) in new long-term bonds on Thursday despite lower demand than in previous auctions, the treasury said.

The treasury had set a goal of raising between 7.0 and 8.0 billion euros for this first auction of the year, after France said in late December it will need to raise 178 billion euros in medium and long-term bonds in 2012.

Yields on the benchmark 10-year bond rose slightly.

France raised 4.020 billion euros in bonds due to mature on October 25, 2021 at an average rate of 3.29 percent, against a rate of 3.18 percent during the last similar operation on December 1.

For bonds maturing on October 25, 2023, 690 million euros were raised at an average rate of 3.50 percent.

Longer term, France raised 1.088 billion euros at an average rate of 3.96 percent on bonds maturing on April 25, 2035.

And on bonds maturing on April 25, 2041, France raised 2.165 billion euros at an average rate of 3.97 percent, against 3.94 percent during the last similar operation.

On Wednesday, Germany raised 4.0 billion euros with a sale of it 10-year bonds, considered the gold standard of eurozone debt.

Germany received 5.14 billion euros' worth of bids for its offering of 5.0 billion euros. The average yield on the 4.0 billion euros in bonds sold was 1.93 percent, up marginally from the 1.905 percent on the secondary market on Tuesday evening.

Investors were also waiting Thursday for the European Financial Stability Facility, the eurozone bailout fund, to issue its first bonds of the year.

The EFSF has said it will issue 3.0 billion euros in three-year bonds to help financially struggling Ireland and Portugal.

© 2012 AFP

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