Pages

Jump to bottom

2 comments

1
Bob Dillon  Nov 23, 2011 • 5:53:38am

Wow! Surprise … and Japan and China and … /

2
Bob Dillon  Nov 23, 2011 • 9:07:09am

German 10-year bond auction a “disaster”

finance.yahoo.com

A “disastrous” sale of German benchmark bonds sparked fears on Wednesday the debt crisis was beginning to threaten even Berlin, with the Bundesbank forced to dig deep into its pockets to ensure the auction did not fail.
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 2 percent 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 39 percent of the 6 billion euros ($8 billion) of debt Germany had hoped to sell after commercial banks bought just 3.644 billion euros of the issue.
“It is a complete and utter disaster,” said Marc Ostwald, strategist at Monument Securities in London.
“This does not bode well, it is the worst of uncovered auctions that we’ve had this year and little wonder that the Bund sold off on the back of it.”
The country’s debt agency said the shortfall in the sale reflected worsening market nerves, that it would sell back the retained amount to investors on secondary debt markets and that Germany would not face a funding bottleneck.
Bund futures, the euro and European stocks fell after the auction, with Germany’s 10-year debt costs rising above equivalent U.S. yields for the first time since early October.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a graphic on German 10-year bond yields minus inflation, click on link.reuters.com
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
The results compared with an average retention rate by the Bundesbank of 17.83 percent at 10-year bond auctions in 2011. Data from IFR, a Thomson Reuters service, showed this to be the highest Bundesbank retention since at least July 1999.
RISK/REWARD
German yields have been forced down to record lows by demand from investors seeking shelter from the debt crisis that has ensnared Italy and Spain and now threatens to drag down other, higher-rated countries such as France and Belgium.


This page has been archived.
Comments are closed.

Jump to top

Create a PageThis is the LGF Pages posting bookmarklet. To use it, drag this button to your browser's bookmark bar, and title it 'LGF Pages' (or whatever you like). Then browse to a site you want to post, select some text on the page to use for a quote, click the bookmarklet, and the Pages posting window will appear with the title, text, and any embedded video or audio files already filled in, ready to go.
Or... you can just click this button to open the Pages posting window right away.
Last updated: 2016-01-01 10:29 am PST
LGF User's Guide RSS Feeds Tweet

Help support Little Green Footballs!

Subscribe now for ad-free access!Register and sign in to a free LGF account before subscribing, and your ad-free access will be automatically enabled.

Recent PagesClick to refresh
Son Little - ‘State Trooper’ (Bruce Springsteen Cover)Son Little covers Bruce Springsteen's "State Trooper" Facebook: facebook.comTwitter: twitter.comTumblr: sonlittle.tumblr.com
Thanos
11 hours, 5 minutes ago
Views: 79 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Jacob Collier & Cory Henry - Arr. Jules Buckley - ” Billie Jean ” -Livebbc.co.uk
Thanos
11 hours, 21 minutes ago
Views: 91 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
My Bubba - Big Bad Good (Live on KEXP)kexp.org presents My bubba performing "Big Bad Good" live in the KEXP studio. Recorded July 30, 2016. Host: MorganAudio Engineer: Jackson LongCameras: Jim Beckmann & Justin WilmoreEditor: Jim Beckmann kexp.orgohmybubba.com
Thanos
11 hours, 26 minutes ago
Views: 70 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Feeder - Eskimo New Album 'All Bright Electric' coming 7th October! feeder.lnk.to Limited and exclusive formats available from the official store: Pre-order now and receive 'Eskimo' and 'Universe of Life' as an instant downloads! Check out upcoming tour datesfeederweb.com FOLLOW FEEDERFacebook - ...
Thanos
11 hours, 34 minutes ago
Views: 94 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Hillary Clinton Speech on How Donald Trump’s Campaign Has Mainstreamed the ‘Alt-Right’ Hate MovementWatch live as Hillary takes the stage in Reno to discuss why Donald Trump's divisive rhetoric is so dangerous to our future.
Thanos
11 hours, 39 minutes ago
Views: 82 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
North Carolina Transgender Students Win Toilet Access Ruling A state law passed in March requires transgender people to use toilets that correspond to the sex on their birth certificates. The ruling led to boycotts of the state by some sports teams, businesses, and entertainers. The full case ...
Thanos
1 day ago
Views: 133 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Sovereign Sex Offender Involved in Tense KCK Standoff Arrested by U.S. Marshals Another Sovereign Citizen standoff, The original standoff lasted for more than six hours outside of a home near 57th Street and Parallel Parkway. U.S. Marshals and KCKPD originally attempted to arrest Gregory Andrews on warrants including a parole violation ...
Thanos
1 day, 13 hours ago
Views: 358 • Comments: 0 • Rating: 2
Tweets: 3 • Share to Facebook
Shares: 0
Comments: 0
: 0
Hillary Clinton Denounces the ‘Alt-Right,’ and the Alt-Right Is Thrilled Mr. Trump has publicly kept his distance from the alt-right, but his critics have accused him of offering subtle cues to invite its support. His appointment of Stephen K. Bannon, the head of Breitbart News, to be chief executive ...
Thanos
1 day, 22 hours ago
Views: 418 • Comments: 1 • Rating: 2
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Tim Kaine Blasts Donald Trump’s Immigration Policies as the ‘Actions of an Idiot’ Tim Kaine didn’t hold back when asked about claims that Donald Trump is softening his stance on immigration. “I don’t buy it,” the Democratic vice presidential nominee told “The Late Show” host Stephen Colbert on Thursday. “He’s always fighting ...
Thanos
1 day, 22 hours ago
Views: 573 • Comments: 0 • Rating: 2
Tweets: 27 • Share to Facebook
Shares: 5
Comments: 0
: 5
Missouri ‘Witch Hunt Hearings’ Modeled on Anti-Choice Congressional Crusade - Rewire “They say that a lot in Missouri,” state Rep. Stacey Newman (D) told Rewire in an interview at the Democratic National Convention last month. Newman is a longtime abortion rights advocate who proposed legislation that would subject firearms purchases ...
Thanos
3 days, 14 hours ago
Views: 498 • Comments: 1 • Rating: 0
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0