Deutsche Bundesbank today conducted a new debt auction for the German Federal Government finding strong demand for its 5-year notes.

Germany allotted 3.1533 billion euros of bonds maturating February 24, 2017 with 0.75% coupon compared to the tendered 8.967 billion euros putting the bid-to-cover ratio at a strong 2.84 times and the average yield at 0.9%.

The sale was still below the 4.0 billion euros target despite receiving strong bids while borrowing costs generally declined with the average yield as said at 0.9% compared to the previous five-year auction of 1.11%.