Those wishing to sign up for the latest government bonds release were able to do so for the first time on Thursday. The Federal Debt Agency reports 73.55 million euro was raised on Thursday with those still wishing to sign up for the bond having until next Friday (13 September) to do so.
31.12 million euro was raised from investors signing up through the banks with direct subscriptions for the new bond via the Debt Agency’s Ledger accounting for a further 42.43 million euro. The vast majority of investors have opted for the 1-year bond. Meanwhile, on Thursday the 10-year bond raised just under 6 million euro.
The 1-year bond has a gross yield 2.75%. This equates to a net yield of 1.93%. The 10-year bond has a gross yield of 2.80% per annum.
Last year's one-year government bond’s net yield was a lot higher at 2.81%. This was thanks to a tax-break on the interest accrued being given to investors in the bond and a higher gross rate being offered than this year. The September 2023 bonds release raised a record 22 billion euro.