adminBERLIN. — Germany paid its highest interest rate in almost two years at a bond auction yesterday, as economic prospects in the eurozone brighten and the country’s safe-haven status dwindles.
The interest rate for the 10-year Bund came in at 2,06 percent, the highest for such an operation since October 2011, according to figures released by the Bundesbank. The Finance Agency sold 4,076 billion euros, and retained 924 millions euros for its own market operations, as it commonly does.
Germany, the eurozone’s biggest economy, has enjoyed very low borrowing costs over the past two years as most of its European partners struggled with recession and deficits and investors turned to German bonds as a secure investment.
As economic prospects have brightened for the region in recent months, interest rates for German debt have gone up on the secondary market, where already-issued bonds are traded.
Germany still pays less than its partners to borrow. Last week Spain issued a 10-year bond at a 4,5 percent rate. — AFP.
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