France sees firm demand at bond auction, 5-year yield falls

PARIS: France saw firm demand at a medium-term, fixed-rate debt auction on Thursday with its borrowing costs over five years easing.

The Agence France Tresor public debt management agency sold 7.94 billion euros ($10.96 billion) of two- and five-year bonds at a regular auction, with investors putting in total bids worth 15.8 billion.

AFT sold 3.57 billion euros of its five-year bond maturing in May 2019, drawing a yield of 0.86 percent.

That was down from 1.06 percent the last time it was auctioned in March.

AFT also sold 4.37 billion euros of a new two-year bond maturing in November 2016 at a yield of 0.32 percent.