German 10-year bond auction a "disaster"

A report from Reuters today says that the German 10-year bond auction was a disaster. The low returns offered by the bonds deterred investors. The returns offered was just 2 percent annually over 10 years.

The returns were pushed to the 2 percent due to demand from investors running towards German Bonds as a shelter from the debt crisis that threatened Greece, Spain and Italy.

The bond market is one of the best indicators of the state of a country's economy. With very little interest in German bonds, the market is now showing that it is starting to think twice about investing in Germany considering that Germany is now underwriting a lot of Eurozone debts.

Full story from Reuters.

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