In an important long-term bond offering, German financing costs hit a 15-year high, and investors are worried about rising government debt and high inflation. According to people familiar with the matter, who did not wish to be named, the German Federal Financial Services Agency issued 4 billion euros of bonds due in August 2056 through bank underwriting groups, with a yield of 3.783%. The current subscription order volume is over 38 billion euros, which is roughly the same as the recent similar offering. The yield of a small 30-year bond auction last month was 3.64%, the highest yield for a regular bond issue of this term since 2011. However, global markets have weakened further in recent weeks, and German treasury yields have returned to the level of the Eurozone debt crisis.

In an important long-term bond offering, German financing costs hit a 15-year high, and investors are worried about rising government debt and high inflation. According to people familiar with the matter, who did not wish to be named, the German Federal Financial Services Agency issued 4 billion euros of bonds due in August 2056 through bank underwriting groups, with a yield of 3.783%. The current subscription order volume is over 38 billion euros, which is roughly the same as the recent similar offering. The yield of a small 30-year bond auction last month was 3.64%, the highest yield for a regular bond issue of this term since 2011. However, global markets have weakened further in recent weeks, and German treasury yields have returned to the level of the Eurozone debt crisis.