Germany will cease sales of inflation-linked bonds starting next year according to a statement from its Federal Finance Agency.
- “From 2024, no further inflation-linked federal securities will be issued, nor will already outstanding securities be reopened”
Germany has four outstanding inflation-lined bonds totalling €66.25 billion. The remaining maturities are between 2.5 and 22.5 years. These will, of course, continue to be tradable on the open market.
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This is probably as good an indication as any that Germany assesses inflation as being under control now.
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Such bonds are popular at times of high or unpredictable inflation. Inflation-linked bonds are a type of bond designed to help protect investors from inflation. The principal amount and the interest payments of these bonds are indexed to inflation, meaning they adjust in accordance with the rate of inflation.