Germany keeps the spending going

  • Lifts overall 2021 debt plans to more than 240B euros
  • Envisages limited deficit spending from 2023 onwards
  • Debt-to-GDP ratio expected to rise to around 75% this year
  • Overall pandemic related new borrowing will hit more than 450B euros from 2020-2022
  • Planned new debt of 81.5B in 2022

Bund yields are down 1.4 bps to -0.308% today. The euro is up 15 pips on the day to 1.1919.