Yields turn negative as Germany sells 12-month debt
Investing.com
Published Jul 23, 2012 05:40AM ET
Germany’s Treasury sold EUR2703 billion in 12-month government bonds at an average yield of negative 0.054% earlier in the day, the lowest yield on record and down from 0.019% at a similar auction last month.
It was the first type the country sold debt at negative yields at this type of auction.
Bids exceeded supply 2.3 times, compared to a “bid-to-cover” ratio of 2.8 in June.
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 remained lower against the U.S. dollar, with EUR/USD shedding 0.4% to trade at 1.2107.
Meanwhile, European stock markets were sharply lower. The EURO STOXX 50 tumbled 2.15%, France’s CAC 40 plunged 1.9%, Germany's DAX sank 1.55%, while London’s FTSE 100 fell 1.65%.
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Written By: Investing.com
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