In an attempt to gain interest on debt, for the first time the German government has sold 30-year bonds with no annual payout.
The finance ministry put €2bn of the bonds up for sale, and sold €869m at a higher face value for and average of €103 each.
Michael Hewson, chief market analyst at CMC Markets said, “What were people were looking for was whether there was going to be decent demand for it, and there wasn’t.
“It’s not surprising when you’re actually paying money for the German government to hold money for you, when there are other assets you could own.
“I think there’s potential for yields to potentially go lower, that’s the direction of travel.”
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