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!
Well, I was thinking about it for a while and need to say that I really like the topic and I would say every individual should invest in that. A lot of things depend on a little details, and this specifically can be that small detail. To be true, this is the single way of the unlimited number, but who could know, maybe the best one. Thanks!