German bond auction ‘disaster’ rocks markets

Posted by Kendall Harmon

In one of the least successful debt sales by Europe's powerhouse economy since the launch of the single currency, the low returns offered - just 2pc annually over 10 years - deterred investors made uneasy by the escalating cost of the crisis to Germany.

That meant the central bank had to pick up 39pc of the €6bn (£5.2bn) of debt Germany had hoped to sell after commercial banks bought just €3.644bn of the issue.

"It is a complete and utter disaster," said Marc Ostwald, strategist at Monument Securities in London.

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Filed under: * Economics, PoliticsEconomyCredit MarketsEuroEuropean Central BankThe Banking System/SectorThe Credit Freeze Crisis of Fall 2008/The Recession of 2007--* International News & CommentaryEurope--European Sovereign Debt Crisis of 2010Germany

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