LONDON, Aug 16: Germany is the only eurozone sovereign due to issue bonds in the coming week, planning to auction 5 billion euros worth of new two-year debt.

Germany sold 3.321bn euros of 10-year Bunds on Wednesday and saw below-average demand as an improved economic outlook for the eurozone sapped appetite for low-yielding bonds. Italy and Spain are likely to continue reaping the benefits of a seasonal break in their issuance calendar.

Their stronger funding positions, with both countries having met 70-80 per cent of their 2013 issuance target, have been major drivers behind a rally that pushed their debt risk premium over Germany to two-year lows this week.—Reuters