German bond net sales reach €47.4 billion in July
Net issuance in the German bond market totaled €47.4 billion in July 2026, up from €39.2 billion in June. Foreign investors were the primary buyers, absorbing €42.1 billion of the net volume, according to Deutsche Bundesbank data.
Public debt and bank paper lead issuance
Domestic debt securities drove market activity with €43.9 billion of the €47.4 billion total in July 2026.
Public sector issuance reached €25.4 billion, dominated by the Federal Government with €27.2 billion in net paper, while state and local governments recorded net redemptions of €1.8 billion.
Among federal debt, 5-year Federal notes accounted for €7.8 billion and 10-year Federal bonds contributed €5.6 billion, alongside €4.9 billion in 2-year notes.
Bank debt issuance totaled €16.5 billion, supported by €7.0 billion in mortgage Pfandbriefe and €8.3 billion in other bank bonds.
Non-financial corporate bonds saw net sales of €2.0 billion, while net foreign debt sales added €3.5 billion.
Foreign buyers absorb debt while equity stalls
Foreign investors absorbed almost the entirety of debt issuance, acquiring €42.1 billion in July.
Domestic buyers took just €5.2 billion as commercial banks reduced their fixed-income portfolios by €16.4 billion and the Bundesbank shed €2.5 billion.
In equity markets, net sales contracted by €2.3 billion due to €4.8 billion in net sales of foreign equities.
Meanwhile, investment fund shares recorded €24.8 billion in net sales, with specialised funds taking €8.4 billion and foreign fund shares attracting €14.8 billion.
Foreign capital keeps the engine running
The figures reveal a striking reliance on cross-border demand to digest elevated German public borrowing.
Domestic credit institutions continue to reduce their exposure, leaving foreign buyers as the primary anchor.
This structural imbalance leaves sovereign refinancing sensitive to shifts in global risk appetite.