FRANKFURT (MNI) – Germany will issue E302 billion in gross nominal
bonds and bills in 2011, the country’s Federal Finance Agency announced

The figure is E10 billion lower than the E312 in nominal bonds the
country sold this year.

Germany plans to issue E185 billion in capital market securities in
2011 and E117 billion in money market securities.

The country will issue between E2 and E3 billion in linker
securities per quarter in 2011, the Finance Agency said. This compares
with E11 billion sold this year.

The Finance Agency reiterated its standard line that it “reserves
the right” to issue securities in foreign currency. In 2010, there were
no sales of foreign-currency securities. In 2009, the agency sold a bond
denominated in U.S. dollars for the first time in four years.

Given Germany’s status as Europe’s benchmark issuer, it is hard for
the country to justify selling securities in a foreign currency, as it
is often not easy for it to find better conditions than it has in its
home market, experts say.

The Finance Agency will divide bond issuances mostly evenly across
the calendar. In the first quarter, it will issue E50 billion in capital
market securities and E30 billion in money market operations.

The second quarter will have E53 billion in capital market and E30
billion in money market sales. Q3 will have E41 and E30 billion
respectively, while Q4 will conclude the year (assuming no revisions)
with E41 billion in capital market and E27 billion in money market

The 2011 calendar kicks off with an E5 billion top up of the
10-year Bund on January 5.

The first new issue will be the six-month bubill to be launched on
January 10.

For a list of issues (new and re-openings) expected in the first
quarter of 2011, consult the following link:


Experts had expected a modest reduction in total issuance of about
E10 billion; total linker issuance was thought to be about E10 billion
this year.

Germany recently passed its budget for next year calling for net
new borrowing of E48.4 billion, just about matching the borrowing
required this year, but considerably below the over E80 billion in 2011
new borrowing Germany had been thought to need at the beginning of the

German issuance calendars have been subject to significant
revisions in recent years. In 2009, the Agency was forced to increase
nominal issuance by E23 billion after the first quarter. The agency
later slashed issuances by E17 billion heading into Q4, resulting in
total nominal issuance only E6 billion higher than initially forecast.

By contrast, the 2010 calendar was slashed by E31 billion in
nominal issuances versus the initial plan of E343 billion in total bond
sales, with most of the cuts coming heading into Q4.

For more details, you can view the Finance Agency’s debt calendar
press release at the following link:


–Frankfurt bureau, +49-69-720142,

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