Vienna: Austria has successfully raised US$1.5 billion through the issuance of federal bonds, covering approximately 60 percent of its expected funding needs for the current year. Official data revealed a surge in demand for Austrian bonds, reflecting investor confidence in the country’s financial stability.
According to Emirates News Agency, the Austrian Federal Financing Agency announced an increase in the issuance of 10-year bonds by £900 million and bonds maturing in 2044 by £600 million. The 10-year bonds offer a yield of 2.943 percent, while the 19-year bonds provide a yield of 3.402 percent.
Markus Stix, Director of the Austrian Federal Financing Agency, expressed his satisfaction with the heightened demand for Austrian bonds, stating that “the capital market is very keen on purchasing Austrian federal bonds.” He emphasized that this reflects continued confidence in Austria’s creditworthiness and noted that the interest rate spread with Germany had narrowed to 40 basis points, though it has yet to reach the long-term average of 30 basis points.
Stix further commented that interest rates have “returned to their normal level,” explaining that Austrian bond yields were priced based on a 25 basis point interest rate cut by the European Central Bank, which has led to higher interest rates for long-term bonds. He highlighted that demand for Austrian bonds was significantly higher than in April, attributing this to the relative stability of interest rates recently.
