Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Golddigger3

Yes. There were seven bond auction failures for German sovereign paper last year.

This one, however, was the largest shortfall in bidders in about eight years.

There have been other sovereign paper auction failures in Europe — the Netherlands, for example.

It isn’t the end of the world, but it does predict that nations issuing debt will need to start increasing yields on their paper in order to attract buyers of bonds. 3.19% in German paper isn’t enough to take on the risk of the Euro and EU-wide machinations. The US has no trouble selling short-term debt for lower yields, probably because our paper is perceived as safer.


14 posted on 01/11/2009 12:22:59 PM PST by NVDave
[ Post Reply | Private Reply | To 2 | View Replies ]


To: NVDave

Right you are, Dave. No new news here — remember some of Ita;y’s auctions in the ‘90s? (chortle!!)


20 posted on 01/11/2009 1:06:10 PM PST by SAJ
[ Post Reply | Private Reply | To 14 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson