Date: Wednesday 09 May 2012
The German Bund futures contract continues to set all-time highs and is now priced at 142.86 after a positive five-year debt auction that saw record-low borrowing rates.
The German Treasury issued five-year debt for €4.032bn. Demand was lower than in the prior auction but the interest rate reached an all-time low of 0.56%, down from 0.8% at the last five-year bond issuance.
Due to these extra-low yields, the Treasury was unable to shift the full €5bn that was on offer.
The German debt market is benefiting from the negative sentiment towards peripheral European debt as a result of Spain's financial sector and Greece's political problems. Spain's risk premium rose to 450 basis points.
Trading the Forex Market? Visit FXmania.com to get advanced infomation about currencies and the Foreign Exchange Market.
or share it with one of these popular networks:
You are here: news