Germany got bids for more than the maximum 5 billion-euro ($6.3 billion) target at a note sale, with the yield falling to a record, as investors sought a refuge from the European debt crisis.
Germany, the only country in the euro area with a stable outlook on its AAA rating, sold 4.56 billion euros of two-year securities carrying a zero-percent coupon for the first time, Bundesbank data showed today. The securities were auctioned to yield 0.07 percent. The country offered a fixed-interest payment of 0.25 percent when selling similar-maturity notes on April 18.
The average yield on German bonds dropped to 1.43 percent on May 17, the lowest since at least 1992, according to Bloomberg and EFFAS indexes. A post-Greek-election poll of 1,253 Bloomberg subscribers found 57 percent expect at least one country to leave the monetary union this year.