Germany is seeing debt crisis problems

Eurozone On Wednesday Germany offered a new set of 10-year bonds on Wednesday’s auction for about 6 billion Eur. Due to lack of interest from investors, almost 3/4 of of the offer wasn’t sold.

One reason could be the upcoming holiday here in the US so the volume was low overall. However as Reuters mentioned this failure to sell German bonds, which are considered as the most secure in the entire Europe is a signal that something is wrong.

Is Germany though seeing the debt crisis spreading into its economy?

This failure is indicates that investors are becoming tired of the long lasting debt crisis. It is a German economy here and not one of the weak countries at the far end of the Euro zone. Shall we be worried though?

This puts an increased pressure on ECB to handle this crisis faster, but has ECB any options here?

This can push the stock market even lower than what I was originally expecting. Let’s see if the US holiday calms investors a bit or we will face another sell-off on half-day trading on Friday.

Happy Trading!





One response to “Germany is seeing debt crisis problems”

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