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

BERLIN (Reuters) - Germany's issuance plan for the second quarter of 2025 remains unchanged on its December forecast, the Federal Finance Agency said on Monday, ahead of an anticipated sea change in fiscal policy that has created a stir on the global bond market.

Germany plans to issue some 380 billion euros in securities this year, its lowest level since 2019, under the existing plan. It aims to raise 240 billion euros ($260.30 billion) on the capital market and a further 126 billion euros on the money market, both through auctions.

The quarterly update from the finance agency, which manages Germany's debt, comes ahead of an expected surge in public spending, made possible by an agreement between the parties seeking to form the next government to drastically reform debt rules and create a special fund for investment.

The anticipated borrowing ramp-up has excited bond investors anticipating a bigger pool of safe-haven debt from Europe's largest economy.

($1 = 0.9220 euros)

(Reporting by Rene Wagner, Editing by Friederike Heine; Writing by Rachel More)