Germany starts sale of new 30-year bond - IFR

LONDON, March 5 (Reuters) - Germany started selling a new 30-year bond via a group of banks on Wednesday, according to LSEG's IFR, a deal that will be closely watched as parties hoping to form the next government agreed on a historic debt overhaul to revamp defence spending and the economy.

Banks managing the sale set guidance on the bond, which matures on August 15 2056, at a spread of around 4 basis points above Germany's outstanding bond due August 15 2054, IFR said.

Germany is selling the bond at a syndication, where a government hires banks to sell the debt directly to end investors.

The country's bond yields surged on the additional borrowing expected to back the overhaul, with 30-year yields jumping over 20 basis points in early trade.