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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German bond auction 'disaster' rocks markets
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.
Read it all.