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, Politics • Economy • Credit Markets • Euro • European Central Bank • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010 • Germany

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