The bad news out of Europe is coming fast and thick now. Markets were still digesting news of Spain's terrible bond auction yesterday, in which the yield on its 3-month debt more than doubled, from 2.3% to over 5%. That was but an appetizer, however; in an auction of 10-year debt today, Germany failed to place some 40% of the issuance. The lack of appetite for German debt has come as a shock to many, and the language being used to describe matters is increasingly apocalyptic. "It is a complete and utter disaster", Reuters has one strategist saying. On the secondary market, German bond yields have finally joined those of its neighbours on their upward march. The German 10-year yield is up sharply today [...] and back above 2%. It still has a way to go to catch France and Austria (approaching 4%), Belgium (over 5%), and Spain and Italy (back near 7%).
Quelle: The Economist
