Net issuance of debt securities in Germany fell from the previous month, even as the circulation of debt securities in Germany rose by 37.6 billion euros.
Public and private borrowers
Net issuance by the federal government was spread across several maturities. It included 9.6 billion euros in two-year Schatzanweisungen, 7.9 billion euros in 30-year bonds and 7.5 billion euros in five-year Obligationen. Net redemptions of ten-year federal bonds totalled 23.5 billion euros.
The public sector as a whole added 6.0 billion euros in net debt securities in August, compared with 25.4 billion euros in July. Capital market debt of the Länder and municipalities changed by a net minus 0.3 billion euros.
Domestic corporations recorded net redemptions of 5.9 billion euros in August, after net issuance of 2.0 billion euros in July. Other financial institutions recorded net redemptions of 5.7 billion euros.
Banks and foreign investors
Credit institutions issued a net 8.8 billion euros in debt securities in August, down from 16.6 billion euros in July. Special credit institutions contributed 8.1 billion euros and other bank debt securities 3.4 billion euros, while net redemptions of mortgage Pfandbriefe came to 2.5 billion euros.
Foreign investors placed a net 28.7 billion euros of debt securities on the German market, and bought a net 28.1 billion euros of German debt securities. Domestic credit institutions bought a net 16.0 billion euros, and domestic non-banks raised their holdings by 10.0 billion euros.
Central bank holdings
The Bundesbank’s own holdings of bonds fell by a net 16.5 billion euros in August. The central bank attributes the decline mainly to expiring holdings from Eurosystem purchase programmes.
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Source: Bundesbank
