Germany's debt issuance plan unchanged for Q2, says finance agency

BERLIN, March 23 (Reuters) - Germany's debt issuance plan for the second quarter of 2026 remains unchanged from its December forecast, the Federal Finance Agency said on Monday.

In the second quarter, the agency responsible for Germany's debt plans to raise 115.5 billion euros ($133.15 billion) through the sale of federal bonds to investors, it said.

Under the existing plan, the government intends to issue a record-high sum of around 512 billion euros ($600 billion) in securities this year due to increased debt-financed investments in infrastructure and defence.

"The federal government plans to execute the planned issuance to the largest extent possible in order to provide market participants with a reliable orientation for their investment decisions," said the agency in a statement.

The sell-off in government bonds in response to the Iran war has driven up yields in recent weeks. German 10-year government bond yields hit their highest since the euro zone crisis in 2011 on Friday.

Germany is a sought-after issuer due to its AAA credit rating from the major rating agencies, which signals an extremely low default risk.

The agency said the next update or confirmation of its issuance plan for the third quarter will be published in June.

($1 = 0.8675 euros)