Germany Confirms €92.5B Debt Sale Plans for Q2 2025

Germany's Finance Agency confirmed its plan to issue €92.5 billion in government debt during the second quarter of 2025, including €62.5 billion in bonds and €30 billion in treasury bills, while also introducing green bonds. This issuance plan remains consistent with their previous December forecast and reflects a broader strategy to manage public spending amidst a struggling economy and ongoing support for Ukraine. The country aims to raise a total of €380 billion this year, the lowest level since 2019, as part of a significant fiscal expansion approved by coalition partners to enhance infrastructure and defense capabilities. However, this increased borrowing could lead to rising interest rates, potentially impacting housing and corporate loans. Analysts anticipate that any future adjustments to the funding strategy will be provided in June, with expectations of increased borrowing from 2026 onwards. The announcement has already influenced the bond market, with prices rising and interest rates falling.