http://www.ft.com/cms/s/0/78994200-15c2-11e1-8db8-00144feabdc0.html#axzz1ecC6ROdH

Paywall alert.

Germany was only able to sell 60% of it’s euro bonds. The market is up 39 points. They won’t let a little thing like a collapse in confidence get in the way of their dead cat bounce…

So you only want people who have paid their Financial Times subscriptions to contribute to this thread Woppit ?

You snob 😐

It’s not just on the FT. you can look at Alex Jones’s site and find the report there.

Telegraph – Bond disaster rocks markets.

Isn’t there a simplified version in the Sun ?

Panic not old chap, I am sure that the regulars will be along to clear it all up in no time.

ernie_lynch – Member
So you only want people who have paid their Financial Times subscriptions to contribute to this thread Woppit ?

You snob

Thanks for that ernie, I haven’t the faintest idea what you’re on about.

Have a nice day.

Isn’t this just the same achingly predictable headline as every single day in the financial pages

Bond yield/Euro Crisis/Greece/Spain/Rate Rise/Italy/Ireland/Iceland/European Banks/ECB/Growth* Crisis Rocks Markets

I wish they’d just get on with the somewhat inevitable collapse of the Euro, so the rest of us can get on with dealing with the aftermath

* Delete as applicable

I wish they’d just get on with the somewhat inevitable collapse of the Euro, so the rest of us can get on with dealing with the aftermath

+1

Here you go ernie, the full article and free.

Shunned Bund sale fuels debt crisis fears

By David Oakley and Tracy Alloway in London, Alex Barker in Brussels and Gerrit Wiesmann in Berlin
Angela MerkelAFP

The worst-received bond sale by Germany since the launch of the euro fuelled market fears that the continent’s debt crisis was now affecting Berlin, the region’s biggest economy and key to the survival of the single currency.

The bond auction only managed to raise two-thirds of the amount targeted. Investors and banks shunned the offering due to worries that Europe’s monetary union project could collapse because of deteriorating market sentiment and the vast size of the region’s public debt.

The euro, which has held up relatively well despite the turmoil in the bond markets, suffered one of its biggest one-day falls against the dollar this year, while eurozone government debt was sold off across the board.

A spokesman for the German debt agency, which oversees the auctions, said: “We are seeing no indication that investors might be losing their appetite for Bunds. … We shouldn’t over-interpret today’s result.”

Some market participants said the low level of German yields may have put off some buyers. The average yield in the auction was a historically low 1.98 per cent. Investors have bought Bunds heavily in recent weeks as they diversified out of peripheral eurozone debt.

But as fear spread across trading floors, Germany started to trade like a risk asset with Bund yields, which have an inverse relationship with prices, rising roughly in line with French, Italian, Spanish and Belgian yields. However yields on short-term German debt went into negative territory, meaning that investors effectively are paying to hold the bills because they see Berlin as a safe haven.

Ewald Nowotny, a European Central Bank policymaker and head of Austria’s central bank, was quoted by the Austria Press Agency as saying the German bond sale was an “alarm signal”, while investors, traders and strategists warned it may prove a tipping point.

Don Smith, economist at Icap, the interdealer broker, said: “This is just one auction, but there is a growing feeling among many in the markets that the crisis is heading one way – and that is towards the break-up of the eurozone.”

In Brussels, José Manuel Barroso, the European Commission president, warned the euro would be “difficult or impossible” to sustain without tighter economic integration and tougher tax and spending rules in the eurozone.

Arguing that the fate of the single currency was at stake, Mr Barroso presented proposals to curb the fiscal excesses of national governments and introduce a joint “eurobond” to replace national debt issuance – but was met with a frosty reception from Berlin.

His proposals will give the European Commission new powers to assess and object to national budgets before they are published – a step towards fiscal integration that is seen as a prerequisite to joint “stability bonds”.

But, at least in public, Angela Merkel, the German chancellor, remained resolutely unimpressed, describing the Commission’s decision to propose eurobonds as “extraordinarily inappropriate” and “troubling” in the midst of a crisis.

Adding to the gloom, data released on Wednesday showed that eurozone industry had been hit by the biggest one month fall in orders in almost three years in September, stoking fears that the region has fallen into recession.

The sale of 10-year bonds saw only €3.64bn raised, out of the targeted €6bn, which was the weakest demand for a German auction since the launch of the euro in January 1999, according to data from Danske Bank.

A senior trader at a US bank said: “We are now seeing funds and clients wanting to get out of anything that is denominated in euros and that includes Bunds because they don’t know what will happen to monetary union. It is not helped by the year-end with most banks not prepared to buy anything.”

Many market participants consider a bond sale that falls short of its targeted amount a failure, although the German debt agency insists otherwise. This is because the Bundesbank retained more than €2bn of the bonds to make up the shortfall. They usually sell these bonds over the following days.

The so-called failure also comes against a trend of poor auctions. It was the ninth auction that failed to meet its target this year, according to the German debt agency. However, demand was significantly weaker this time round.
I’m somewhat surprised at your lack of research. You can get a limited number of free FT articles you know.

I wish they’d just get on with the somewhat inevitable collapse of the Euro

TJ to the forum.

it wont collapse Binners the market are just seeing who is strongest and I don’t think the EU will back down – the political leaders would be committing political suicide and what are the chances of that happening when they can just cripple their countries instead.
EDIT: for clarity I am sitting on the fence on this one I am not as certain as some that it will collapse though tough times are ahead. It could still survive.

ernie_lynch – Member
So you only want people who have paid their Financial Times subscriptions to contribute to this thread Woppit ?

You snob

Thanks for that ernie, I haven’t the faintest idea what you’re on about.

Have a nice da

the article you link to requires you to pay or register with Murdoch and not everyone will do this. It would be easier if you had used an alternative link that we could all access for free and without recourse to Murdoch

If you need any Ladybird books or Mr Men stories explaining give me a shout 🙄

The euro is collapsing, but slowly.

The link is to the Financial Times JY, not the Times – not Murdoch.

The Euro is a brilliant idea, but not when the member states have vastly different economies. Stricter criteria for admission to the single currency would have mitigated this problem.

I’ve nothing against the EU in principle, indeed I think it’s laudable but the events of late seem to pay lip service to the concept of democracy.

the article you link to requires you to pay or register with Murdoch and not everyone will do this. It would be easier if you had used an alternative link that we could all access for free and without recourse to Murdoch

Bizarre. I just googled “germany bund sale” and clicked on the first link and – hey presto – there it was!!

I’m SO SORRY! I had NO IDEA!!

Please forgive me.

I think you need to spend some time on the naughty step Mr Woppit! And take some time to reflect on exactly what it is you’ve just done!

Off you go

Back on topic. Perhaps Germany and France may be able to create a ‘Hard’ euro for the northern EU, but the euro as we know it is toast. The question is how long will it take, and how much will be wasted trying to w*nk off this dead dog?

The Euro is a brilliant idea, but not when the member states have vastly different economies. Stricter criteria for admission to the single currency would have mitigated this problem.

Agreed, as the Euro is simply a single currency that still has an exchange rate within Europe, there are always going to be problems. The growth of the Euro should have been through the addition of similar economies rather than forcing wildly differing economies into satisfying set criteria.
Is there any shame in letting it fail, then starting all over again having learnt from the mistakes? (Nice theory, but you get the idea).

I had NO IDEA!

that’s no excuse for giving money to the Murdochs…

Doh

The question is how long will it take, and how much will be wasted trying to w*nk off this dead dog?

A beautifully worded and pretty accurate summary

My prediction is another few months of hopeless dithering by EU leaders*, before the markets take the decision out of their hands and force the issue. By this time, squillions of Euro’s will be poured down the bottomless money pit

* The word ‘Leader’ is used figuratively, and under no circumstances suggests any actual leadership

Nice article by Paul Krugman :

Romantic views threaten Europe

I think you need to spend some time on the naughty step Mr Woppit! And take some time to reflect on exactly what it is you’ve just done!

Off you go

My prediction is another few months of hopeless dithering by EU leaders*, before the markets take the decision out of their hands and force the issue. By this time, squillions of Euro’s will be poured down the bottomless money pit

Let us not forget the subsequent pillaging of the newly bankrupt economies, forced privatisations of health, education, prisons etc by the IMF as they ‘assist’ the countries who can no longer borrow enough money to keep the lights on from anyone else.

I think Angela Merkel needs to go on the naughty step too….

…..now that we know what she’s being doing

how much will be wasted trying to w*nk off this dead dog?

That’s a very apt analogy. 😀

The link is to the Financial Times JY, not the Times – not Murdoch

😳 – did he even used to own it or am i just completely wrong?

[

Even the Times Educational Supplement isn’t owned by Murdoch. No, the FT never has been.

I withdraw my comment re: giving money to murdoch.

Mr Woppit – go to the top of the class for working out how to get round the FT paywall.

Don’t understand any of it mind…

Junkyard – Member

Cheers ernie

Nothing wrong with being wrong whoppit and admitting it …this forum would be a better place if more folk could do it rathe rthna argue on.
I am happy to accept I dont know everything [unlike some] but hey if you want to see that or me as admitting it as a weakness be my guest.
Every days a school day on STW

Junkyard – Member
Cheers ernie

Nothing wrong with being wrong whoppit and admitting it …this forum would be a better place if more folk could do it rathe rthna argue on.

Clearly a dangerous subversive has infiltrated this forum.

Referencing your earlier offer.

Joke, Junkyard, joke… 😉

OH ffs not again 🙄
😳

Idiots flounce – probably wont even manage that today

I’m going to Berlin this weekend, will it be a post-apocalyptic wasteland? What gun for Berlin?

What gun for Berlin?

Historical precedent might suggest a Luger?