The German Bundesbank published its January 2025 securities market statistics, showing a sharp rise in bond market activity and an overall increase of EUR 54.0 billion in the outstanding volume of domestic and foreign debt securities held in Germany. Gross issuance on the German bond market totalled EUR 155.0 billion, up from EUR 82.3 billion in the previous month. After accounting for higher redemptions and issuers’ own-portfolio changes, outstanding domestic debt securities rose by EUR 29.3 billion (after a EUR 6.0 billion decline in December 2024), while outstanding foreign securities in the German market increased by EUR 24.7 billion. Net issuance by the public sector was EUR 15.6 billion, including a EUR 10.4 billion rise in federal government market debt, driven mainly by ten-year bonds (EUR 7.5 billion), two-year notes (EUR 6.2 billion) and 30-year bonds (EUR 2.9 billion), partly offset by net redemptions of Bubills (EUR 7.5 billion); state and local governments issued EUR 5.2 billion net. Domestic credit institutions issued EUR 13.8 billion net (after net redemptions of EUR 14.6 billion previously), led by other bank bonds (EUR 6.9 billion), mortgage Pfandbriefe (EUR 3.6 billion) and bonds of specialised credit institutions (EUR 3.1 billion), while domestic corporates were broadly flat at EUR -0.1 billion. On the investor side, foreign investors and domestic banks were the main net buyers (EUR 34.5 billion and EUR 34.4 billion), with banks buying predominantly foreign bonds; domestic non-banks were net sellers (EUR 4.4 billion). The Bundesbank’s bond holdings fell by EUR 10.5 billion, mainly reflecting maturing securities from the Eurosystem’s purchase programmes; separate figures showed net equity issuance of EUR 0.6 billion by domestic firms and net inflows of EUR 5.4 billion into domestic investment funds, concentrated in special funds (EUR 6.8 billion).
German Bundesbank 2025-03-14
German Bundesbank reports strong January 2025 bond issuance and a EUR 54.0 billion increase in outstanding securities
The German Bundesbank's January 2025 securities market statistics show a significant increase in bond market activity, with domestic and foreign debt securities in Germany rising by EUR 54.0 billion. Gross issuance reached EUR 155.0 billion, driven by public sector net issuance of EUR 15.6 billion and domestic credit institutions issuing EUR 13.8 billion net. Foreign investors and domestic banks were the main net buyers, while the Bundesbank's bond holdings decreased by EUR 10.5 billion due to maturing securities from the Eurosystem’s purchase programmes.