Germany increases bond sales by $2.9bn

Bloomberg

Germany increased planned bond sales in the second quarter by 2.5 billion euros ($2.9 billion), as the government ramps up borrowing to help offset
the impact of the coronavirus pandemic.
The federal government will issue 59.5 billion euros of bonds and bills in the April-June period, up from 57 billion euros planned at the end of last year, the Federal Finance Agency said.
“Due to the uncertain pandemic development and related challenges to the budget planning, additional adjustments to the issuance schedule can become necessary in the third and fourth quarter of 2021,” the agency said in a statement.
Chancellor Angela Merkel’s cabinet has approved the government’s budget plans for this year and next, including an extra 60 billion euros in net debt for 2021. The additional borrowing takes the total this year to more than 240 billion euros, as Germany spends freely to support businesses affected by the
coronavirus shutdown.
The restrictions have been in place for several months and will remain in force until at least April 18.
In 2022, Finance Minister Olaf Scholz is targeting net borrowing of 81.5 billion euros, requiring a suspension of constitutional debt limits for a third straight year.
According to the Finance Agency’s provisional calendar published in December, the federal government, Europe’s benchmark issuer, planned to sell as much as 471 billion euros in bonds and bills this year.
Finance Agency Managing Director Tammo Diemer will hold a conference call with reporters to discuss second-quarter debt issuance at 1100 CET. An update or confirmation of the issuance schedule for the third quarter will be published in June.