Germany bond auction successful

January 4, 2012

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FRANKFURT, Germany—Germany has successfully auctioned euro4.06 billion ($5.28 billion) in 10-year bonds despite ongoing concerns over the debt crisis that's afflicting the 17-nation eurozone.

Demand for the bonds outstripped supply as investors placed bids for euro5.14 billion of the debt securities. The average interest yield was a low 1.93 percent, down from 1.98 percent in November.

German bonds have been seen as a safe haven by some investors, which enables the country to borrow cheaply because its government finances are among the strongest in the eurozone.

But the potential burdens of helping other, heavily indebted countries have raised questions about the finances of even the biggest members of the eurozone, Germany and France. A German auction late last year failed to sell all the bonds on offer.