The German Bundesbank published data on securities issuance and investment showing that the volume of bonds outstanding in Germany fell in December 2025 as redemptions exceeded new issuance. Domestic debt securities issuance totalled EUR 55.9 billion, down from EUR 106.3 billion in November, and after accounting for higher redemptions and issuers’ own-portfolio changes the stock of domestic bonds declined by EUR 26.4 billion. The volume of foreign debt securities outstanding in Germany fell by a further EUR 7.6 billion, bringing the total amount flowing back to investors to EUR 33.9 billion. Domestic credit institutions reduced capital market debt by EUR 12.4 billion, driven by special credit institutions including public promotional banks (-EUR 12.4 billion), alongside declines in mortgage Pfandbriefe (-EUR 1.2 billion) and public-sector Pfandbriefe (-EUR 0.8 billion), partly offset by net issuance of other bank debt (EUR 2.0 billion). Domestic corporates recorded net redemptions of EUR 7.5 billion, while the public sector reduced bond-market liabilities by EUR 6.5 billion, with the federal government primarily redeeming two-year Treasury notes (-EUR 11.1 billion) and issuing five-year federal notes (EUR 1.8 billion) and 10- and 30-year federal bonds (EUR 1.4 billion and EUR 1.9 billion). On the investor side, domestic non-banks were the only net buyers of bonds (EUR 4.2 billion), foreign investors sold German debt securities net (EUR 23.9 billion), domestic banks reduced bond holdings (EUR 12.2 billion), and the Bundesbank’s bond holdings fell by EUR 2.1 billion, mainly due to maturing assets from purchase programmes. In equities, net issuance of domestic shares rose to EUR 1.4 billion while the outstanding volume of foreign shares in Germany fell by EUR 30.0 billion, with all investor groups net selling led by domestic banks (-EUR 21.4 billion). Domestic investment funds saw net inflows of EUR 23.3 billion, concentrated in special funds (EUR 22.9 billion), while foreign fund companies sold EUR 15.5 billion of units in Germany, with domestic non-banks the main net purchasers of fund units (EUR 38.0 billion).
German Bundesbank 2026-02-12
German Bundesbank reports EUR 33.9 billion net redemptions in the German bond market in December 2025
The German Bundesbank reported a decline in bonds outstanding in Germany for December 2025, with domestic debt securities issuance dropping to EUR 55.9 billion from EUR 106.3 billion in November, leading to a net reduction of EUR 26.4 billion in domestic bonds. Additionally, foreign debt securities outstanding fell by EUR 7.6 billion, while domestic non-banks were the only net buyers of bonds, and domestic investment funds experienced net inflows of EUR 23.3 billion, primarily in special funds.