Bundesbank reports high net sales on German bond market in November 2025
The Bundesbank reported high net sales on the German bond market in November 2025. Domestic debt securities were issued for a net €44.5 billion, contributing to an overall increase of €46.1 billion in outstanding debt securities on the German market.
Public sector drives bond issuance
In November 2025, the German bond market saw a gross issuance volume of €106.3 billion.
Net issuance of domestic debt securities reached €44.5 billion, leading to an overall increase of €46.1 billion in outstanding debt securities on the German market.
The public sector was a primary driver, increasing its capital market debt by €33.7 billion, a significant jump from €8.5 billion in October.
The federal government primarily issued ten-year bonds (€7.7 billion), zero-coupon Bubills (€6.4 billion), and two-year Treasury notes (€5.2 billion).
Domestic credit institutions issued a net €6.8 billion in bonds, largely from specialized credit institutions.
Domestic companies also expanded their capital market debt by €4.0 billion, mainly via non-financial corporations issuing longer-term debt.
Foreign investors drive demand
Foreign investors were prominent buyers of German debt securities, acquiring a net €40.9 billion.
Domestic credit institutions increased their bond portfolios by a net €5.0 billion, exclusively in foreign titles, while domestic non-banks acquired a net €3.2 billion, focusing on domestic issues.
The Bundesbank's bond holdings decreased by €3.1 billion.
On the equity market, domestic companies issued new shares for a net €0.9 billion, a sharp decline from October's €9.3 billion.
Domestic investment funds recorded inflows of €10.5 billion, primarily benefiting special funds for institutional investors (€8.1 billion).
Public debt fuels market activity
The German bond market's sustained high net sales confirm its appeal, especially to foreign investors.
This robust activity, largely fueled by public sector issuance, indicates an ongoing reliance on debt financing for public needs.
The notable decline in equity issuance, however, suggests domestic companies remain cautious about new capital market funding.