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You are here: Home News French News France, Germany pay low rates on short-term debt
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08/02/2012France, Germany pay low rates on short-term debt

Short-term French and German borrowing rates stayed low on Wednesday as reports of an imminent agreement on a Greek debt reassured investors that have been returning to the bond markets.

France raised 9.324 billion euros ($12.4 billion) in short term debt with sustained demand and low interest rates, though the latter edged upwards from recent operations of a similar type, the national treasury said.

Yields on six-month bonds rose slightly to 0.249 percent from 0.235 percent on January 30 while the yield on one-year bonds edged up to 0.436 from 0.435 percent.

But the borrowing rate for 13-week debt dropped to 0.145 percent from 0.156 percent.

Germany raised 3.3 billion euros in five-year debt at an unchanged rate of 0.91 percent. Demand far outstripped supply, at 5.9 billion euros, the German central bank said.

In Greece meanwhle, a final framework for a second rescue package worth 130 billion euros from the European Union and International Monetary Fund was in the hands of partners in the governing coalition.

Heads of the socialist, conservative and far-right parties are expected to approve the programme later in the day, a New Democracy (ND) source said.

While still strained, the eurozone sovereign bond market has witnessed some easing since the European Central Bank injected almost half a trillion euros into the bloc's embattled banking system in December.


© 2012 AFP


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