Borrowing costs ease up as Germany sells 10-year debt
Investing.com
Published Jun 13, 2012 05:39AM ET
Germany’s Treasury sold EUR4.04 billion in 10-year government bonds maturing in July 2022 at an average yield of 1.52% earlier in the day, up from 1.47% at a similar auction last month.
Demand was lackluster, with bids exceeding supply 1.40 times, compared to a "bid-to-cover" ratio of 1.50 in May. The country planned to sell EUR5 billion in 10-year debt.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
Following the auction, the euro held on to gains against the U.S. dollar, with EUR/USD rising 0.23% to trade at 1.2533.
European stock markets turned lower in choppy trade. The EURO STOXX 50 dipped 0.1%, France’s CAC 40 declined 0.45%, Germany's DAX slumped 0.55%, while London’s FTSE 100 shed 0.25%.
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Written By: Investing.com
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