The German bund has fetched a record low yield of 1.31 per cent in its latest 10-year bond auction held on Wednesday morning. In the prior auction, the bunds carried a yield of 1.52 per cent.
Germany sold the bonds for a total of EUR4.152bn compared to the high-end target of EUR5bn. It received total bids for EUR6.391bn for a bid-to-cover ratio of 1.5, slightly higher than the 1.4 at the previous auction.
Following the debt auction, 10-year bund yields continued their decline on the secondary market to 1.28%.