The German Bundesbank published its May 2025 capital market statistics, showing a strong expansion in debt securities outstanding in Germany. Gross issuance on the German bond market rose to EUR 135.6bn, and the total outstanding volume of debt securities increased by EUR 58.8bn, reflecting both a EUR 35.7bn rise in domestic bonds outstanding and net placement of foreign debt securities of EUR 23.1bn in the German market. By issuer, the public sector increased bond market liabilities by net EUR 23.0bn, with the federal government issuing primarily 30-year bonds (EUR 9.6bn), two-year Treasury notes (EUR 7.8bn), 10-year bonds (EUR 5.8bn) and five-year notes (EUR 5.2bn), while states and municipalities redeemed net EUR 3.3bn. Credit institutions recorded net issuance of EUR 12.7bn, driven by specialised credit institutions (EUR 15.2bn), alongside net issuance of public-sector Pfandbriefe (EUR 1.5bn) and net declines in other bank debt securities (EUR 3.5bn) and mortgage Pfandbriefe (EUR 0.4bn). Domestic corporate bond borrowing was broadly flat, with other financial institutions and insurers issuing net EUR 1.6bn and non-financial corporations redeeming net EUR 1.4bn; on the investor side, foreign investors were the largest net buyers of domestic bonds (EUR 30.2bn), while the Bundesbank’s bond holdings fell by net EUR 4.1bn, mainly due to maturing positions from the Eurosystem purchase programmes. In equities, new share issuance totalled EUR 0.2bn and the outstanding volume of foreign shares in Germany increased by EUR 7.3bn, while domestic investment funds saw net inflows of EUR 5.1bn and foreign fund providers active in the German market recorded inflows of EUR 12.4bn.

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