Bundesbank issues €6.0 billion in Federal Treasury Notes
The Deutsche Bundesbank has completed an auction for 2 percent Federal Treasury Notes, issuing €6.0 billion. The auction on January 6, 2026, saw bids totaling €8.765 billion.
Auction sees strong demand
The auction for 2 percent Federal Treasury Notes, maturing on December 16, 2027, attracted total bids of €8.765 billion.
Of these, €5.235 billion were price bids, and €3.530 billion were bids without price indication.
The Bundesbank allocated €4.547 billion, resulting in a cover ratio of 1.9, indicating robust demand for the issuance.
The retained market management quota, representing the federal government's own holdings, amounted to €1.453 billion.
Pricing and total issuance volume
The lowest accepted price in the auction was 99.790 percent, with a weighted average price of 99.791 percent.
This corresponds to an average yield of 2.11 percent.
For bids at the lowest accepted price, 85 percent were allocated, while 90 percent were allocated for bids without price indication.
The current increase brings the total issuance volume of these 2 percent Federal Treasury Notes to €21.000 billion, up from a previous issuance volume of €15.000 billion.
Solid demand for government debt
The strong cover ratio of 1.9 indicates robust investor appetite for German government bonds, even in the current interest rate environment.
This successful placement underscores the market's confidence in the federal government's creditworthiness and its debt management strategy.
For the Bundesbank, the auction confirms efficient market functioning and provides stable funding for the federal budget.