Germany will increase the placement of government securities in 2026 to a record €512 billion to raise funds for financing large-scale infrastructure and defense expenditures.
The placement volume will increase by 20% compared to this year's level (€425 billion). The previous record of €500 billion was recorded in 2023.
The German Finance Agency (DFA), which manages public debt, plans to sell securities worth €318 billion in the capital market through auctions and raise another €176 billion in the money market, according to its statement. Additionally, it plans to issue 'green' bonds worth €16-19 billion.
DFA also announced that it will issue 20-year bonds for the first time.
The yield on Germany's ten-year government bonds has risen by nearly 50 basis points since the beginning of this year.
Germany's Chancellor Friedrich Merz, who took office in May, is trying to revive the country's economy, which has been stagnant since the COVID-19 pandemic. His government has promised to allocate €500 billion for infrastructure projects in the country over the next ten years.
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