Next week will see the start of a new round of government bond issues, kicking off with a 10-year bond with an interest rate set at 0.8%, announced the Federal Debt Agency on Thursday. The rate is slightly higher than the record-low 0.6% on the same 10-year bond in March. An 8-year bond was also issued in March but this coming round will only have the 10-year bond on offer. The subscription period for the new issue will run from May 26th 2015 to June 3rd 2015 inclusive.
Government bonds are mainly aimed at private individuals and tend to be issued 4 times a year. Given the very low rates over the past several years, the amounts collected through the issue rarely exceed 20 million euros. In March, subscriptions only raised 3.491 million euros.