Germany sticks with Q4 debt issuance plans, finance agency says

BERLIN, Sept 24 (Reuters) - Germany's debt issuance plans for the fourth quarter remain unchanged from its December forecast, the federal government's finance agency said on Thursday.

The Federal Finance Agency, responsible for Germany's debt, plans to raise €59 billion ($67 billion) through the sale of federal bonds to investors in the last quarter of 2026, it said.

The agency will also issue €47 billion of money market instruments - federal securities with maturities of up to 12 months.

This leaves the agency's existing plan unchanged: The government intends to issue a record-high sum of around €512 billion in securities this year due to increased debt-financed investments in infrastructure and defence.

Germany remains one of the world's most sought-after sovereign borrowers due to its top-tier AAA credit rating, which was reaffirmed this month by the European rating agency Scope.

That is even though a sell-off in government debt triggered by the Iran war has driven yields sharply higher in recent weeks: The yield on Germany's benchmark 10-year Bund briefly rose above 3.5% this month, its highest level in 17 years.

One reason is the growing risk of inflation resulting from the Middle East conflict, which has prompted the European Central Bank to raise its key interest rate twice this year, pushing up government borrowing costs.

The German agency plans to publish its annual forecast for the 2027 issuance plan in December, it said.

($1 = 0.8777 euros)