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Germany borrows $5.5BN at record-low yield of 0.14 pct on 2-year-bonds
BERLIN (AP) ' Germany's central bank says the country has raised '4.2 billion ($5.5 billion) in a bond auction that saw investors accepting a record low return.
The Bundesbank said Wednesday the average yield for the two-year-bonds was 0.14 percent in the auction that saw demand almost twice exceeding the offer.
Investors widely see Germany as a safe haven amid Europe's sovereign debt crisis, thus strengthening demand and driving down yields on German government debt.
German finance agency spokesman Joerg Mueller says the result is the lowest return ever achieved for two-year bonds. The last auction of debt with the same maturity in March still yielded 0.31 percent.