Net redemptions on German bond market in March 2026
The Bundesbank reports net redemptions on the German bond market totaling €2.7 billion in March 2026. This figure follows a net acquisition of €27.8 billion in February and reflects a mixed picture across different security types.
Domestic bonds face significant outflows
In March 2026, the German bond market experienced overall net redemptions, primarily driven by domestic securities.
Domestic bonds saw a net redemption of €9.8 billion.
This was largely due to banks' Schuldverschreibungen (debt securities), which recorded a substantial net redemption of €20.4 billion.
Within this category, Schuldverschreibungen of Spezialkreditinstituten accounted for €14.2 billion in redemptions, while sonstige Bankschuldverschreibungen contributed €4.2 billion.
Conversely, Schuldverschreibungen der öffentlichen Hand (public sector bonds) showed net acquisitions of €15.9 billion, with federal bonds (Bund) contributing €15.8 billion.
Corporate bonds also saw net redemptions of €5.3 billion.
This indicates a clear divergence in investor preference within the domestic market, with a strong demand for public sector debt offsetting significant outflows from bank-issued securities.
Foreign investors show continued interest
While domestic bonds faced redemptions, foreign investors continued to acquire German securities, albeit at a slower pace.
Foreign acquisitions of Inhaberschuldverschreibungen (bearer bonds) amounted to €12.5 billion in March 2026, contributing positively to the overall market.
This contrasts with the previous month, February 2026, which saw foreign acquisitions of €18.6 billion.
For the first quarter of 2026 (January-March), foreign investors acquired a total of €58.6 billion in German bonds.
This sustained interest from abroad helped to mitigate the larger domestic outflows, highlighting the ongoing appeal of German debt instruments to international portfolios despite the overall net redemption figure for the month.
Routine data, subtle shifts
This Bundesbank release provides granular, routine data on the German bond market, confirming a net redemption trend for March.
While not immediately signaling a major shift, the contrasting flows between domestic and foreign investors, and within domestic categories, offer insights into evolving market preferences.
For analysts, these figures underscore the importance of disaggregated data to understand the nuanced dynamics beneath headline numbers.