German Bond Sale Failure

If the following does not stop the suicidal Monetary Policy Committee of the Bank of England from a further pointless cut in Sterling interest rates then nothing will: German bond sale’s failure signals trouble ahead A German sovereign bond auction failed on Wednesday as investors shunned one of the most liquid and safe assets in the world in a warning for governments seeking to raise record amounts of debt to stimulate slowing economies. The fate of the first eurozone bond auction of 2009 signals trouble ahead as governments around the world hope to issue an estimated $3,000bn in debt this year, three times more than in 2008. The 10-year bonds failed to attract enough bids to reach the €6bn the German government wanted. Bids of €5.24bn, a cover of only 87 per cent, amounted to... Read more from this link. Also from the same source you may read the continuation of an article that begins as follows: In terms of debt dynamics, the UK is by far the worst of the 'AAA' club of countries. The underlying fiscal picture is terrrible,' said Brian Coulton, head of sovereign rates at the credit agency.Mr Coulton said it would become increasingly hard for ...