German 10-year bond yield declines
The average yield at Germany's 10-year government bond auction fell to 3.37%, down from 3.58% at the previous auction. The 21-basis-point decline indicated lower long-term borrowing costs for Germany.
The auction's bid-to-cover ratio decreased to 1.1, compared with 1.2 at the previous auction. Despite the lower borrowing yield, the decline in the bid-to-cover ratio suggested weaker investor demand relative to the previous sale. The results may be relevant to Eurozone bond markets and expectations for European Central Bank (ECB) interest-rate policy.
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