German Bundesbank reports March securities market data with EUR 9.8 billion domestic bond redemption and EUR 2.5 billion fund inflows

The German Bundesbank published March securities market data showing net redemptions of EUR 9.8 billion in domestic debt securities. A EUR 12.5 billion increase in foreign debt securities outstanding in the German market more than offset that decline, leaving total bonds outstanding in Germany up EUR 2.7 billion. Within domestic issuance, the public sector was a net issuer at EUR 15.9 billion, while domestic banks redeemed EUR 20.4 billion and domestic companies reduced capital market debt by EUR 5.3 billion. Domestic companies also raised EUR 1.3 billion in the equity market, and domestic investment funds recorded inflows of EUR 2.5 billion. Gross issuance in the German bond market was EUR 115.4 billion, slightly below EUR 129.1 billion in February. Federal issuance was concentrated in 10-year and 5-year paper at EUR 11.4 billion and EUR 10.3 billion, alongside EUR 5.0 billion of 30-year bonds and EUR 3.4 billion of 15-year bonds, partly offset by net redemptions of two-year Treasury notes and Bubills of EUR 10.9 billion and EUR 8.1 billion. Domestic banks and foreign investors were the main net buyers of debt securities at EUR 6.3 billion and EUR 6.1 billion, while the Bundesbank's holdings fell by EUR 9.1 billion, mainly because securities acquired under Eurosystem purchase programmes matured. In equities, only domestic non-banks were net buyers at EUR 5.9 billion, while domestic banks and foreign investors reduced their holdings by EUR 14.8 billion and EUR 4.1 billion. Fund inflows were led by retail funds at EUR 2.0 billion, with bond funds and equity funds attracting EUR 4.8 billion and EUR 1.7 billion, while mixed securities funds saw net redemptions of EUR 5.3 billion. Shares in foreign funds distributed in Germany increased by EUR 3.8 billion.