German govt bond auction falls flat

German govt bond auction falls flat

German government bonds, or bunds, carry low yields, but are deemed the safest haven in the euro zone bond market. Germany has fallen short of a targeted bond sale before because of its super-low yields, but that size of shortfall was stunning in a market already rapidly losing confidence in European Union proposals to contain the debt crisis. A German finance agency spokesman said the auction reflected a nervous market, but the “result doesn’t mean any refinancing bottleneck for the budget".

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—The Wall Street Journal

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