German 7-year bond auction yield rises sharply
Germany's 7-year bond auction produced an average yield of 3.36%, significantly above the previous auction's 2.68%.
The higher yield indicates that investors demanded greater returns to purchase German government debt compared with the previous auction.
The bid-to-cover ratio increased to 1.4 from 1.2, suggesting stronger demand relative to the amount offered. While demand improved, the sharp rise in the yield could draw attention to changing Eurozone interest-rate expectations and broader European bond-market pricing.
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