German 10-year bond auction
One of Germany’s worst bond sales. The debt crisis was even beginning to threaten Berlin on Wednesday, with the Bundesbank forced to buy large amounts of the bonds to ensure the auction did not fail.
The low yields offered on the 10-year paper deterred investors from the auction, especially because of growing concerns over the cost to Germany of the escalating crisis.
The results compared with an average retention by the central bank of 17.83 percent at 10-year bond auctions in 2011
The euro plunged over 100 pips against the dollar to a seven-week low of 1.3372. On the day EURUSD has declined 1.2 percent
