Ze Germans are thinking about the future and next year they are reducing borrowing to €185.5bn in 2015 with all of the debt issued being used to refinance or redeem past debt.

They will be looking to sell €147bn of that in bonds of at least two years. They will also look at selling around €10bn in linkers for the first time and probably on a 30 year maturity.

Next year they have around €27.5bn in interest payments vs €33bn in 2013 and €38bn in 2012

Merkel’s plan to “not leave future generations with mountains of debt” faces a continuous tough time in parliament with many complaining about crumbling infrastructure and a lack of spending to solve it.

Germany may have their finances in order but it’s a very different kettle of fish elsewhere. The PIIGS countries face some very big interest payments from bonds that were issued at crazy rates over the crisis and they’ll be feeling the pinch from those for many years to come. The only upside is the current levels of yields that they’ll be issuing at for 2015. German 10’s touched a new all time low at 0.566% yesterday

German 10 year yields 17 12 2014

German 10 year yields 17 12 2014