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Zero-yielding German two-year bonds meet high demand
German two-year debt yields held close to 15-month lows just below zero on Wednesday, with record low money market rates and expectations of easier ECB monetary policy underpinning demand at an auction of similarly-dated bonds Germany sold over 4 billion euros of a new two-year bond, with demand from investors double that amount despite the average yield and the coupon both being zero. Data last week showing the euro zone economy stagnated in the second quarter even before the impact of sanctions imposed on and by Russia over the conflict in Ukraine cemented expectations European Central Bank interest would stay ... (full story)