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A NEW AUCTION of German 10-year bond has gone ‘disastrously’, according to European traders – showing signs that the debt crisis consuming the Eurozone may be spreading to its strongest economy.
The country’s treasury this morning auctioned off €6 billion in bonds – but only received bids for around €3.8 billion of that amount, with investors apparently baulking at the low interest rate on offer.
Germany’s central bank, the Bundesbank, had to step in to buy the remainder of the bonds in order to stop the auction from failing altogether.
The bonds sold at an average yield of 1.98 per cent.
One analyst told the Wall Street Journal that the auction reflected the “deep mistrust” of the eurozone, but others used more damning words – with analysts telling both Reuters and Bloomberg that the auction was simply a “disaster”.
The auction was also hit by some fears over the Belgian government, which was rumoured to be seeking a renegotiation of the plans for the break-up of the Dexia bank.
Last month the government agreed to pump €4bn into the troubled Franco-Belgian bank – but the WSJ report said the Belgian administration was now looking to renegotiate the terms of this deal, apparently because it couldn’t pay its agreed share.
The price of borrowing for Belgium – which is now seeing fresh political turmoil – today rose to well over 5.3 per cent, the highest it has been in the euro area.
The news also sent the major European markets downward.
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We got lucky this time thankfully.
@Declan Gibney: may not be lucky next time.Time to stock up the freezer.Could be a big run in bread.
@Willie Marty: And toilet paper!
@Nickb: lol and vaseline
Lol certainly not although some lads on here might need the vaseline or bonjella for the lips after all the (mouthing) talking they do.
The weather forecasters are on high alert as they can’t pronounce Ciarán
@Patrick Presley: racist and silly comment
@SF Means Sh!t 4 Free: yes, wondering same as you, how is this racist?
Actually made me smile, I wonder how they’ll pronounce Ciarán over there…
Serious storm though
@Jerry LeFrog: actually just saw a YT video, they pronounce it correctly with a French twist “Keeranne”
@Ger Byrne: Uneducated. Should not be allowed anywhere near a device that can connect to the internet.
Eurostar what a great achievement and here we can’t put down one piece of railway track but only greenaways, not even a railways service to our busiest airport.
@Leonard Barry: and now over to met eireann for the latest weather forecast
Oh look,we can comment on rainfall abroad; I’d say that innocuous enough.
@Marie Power: And you took the opportunity to write, “I’d say that innocuous enough.”
@James Carroll: I know James, apologies; it should have read:’ I’d say that’s innocuous etc’.
Hopefully it doesn’t do any damage to England or France
Hope the French are ok
I know that the north of France is getting the brunt, but we have gusts of up to 100km here in the south east. Windy enough, especially with a huge tree near us that, while the core may be structurally sound, it frequently loses heavy branches in high winds.
@David Stapleton: them branches can weigh a ton or more. Serious business.
@David Stapleton: well it is certainly good for business David – I am in the East and I have been trying to get various companies to come out and look at a tree that needs to be cut as it is a bit too near power/phone lines and might cause some harm next time. Numerous calls later to different companies and “we call out tomorrow, next week” etc and weeks later still waiting.
We need emergency flood relief pipes, sunk on to major river beds and overflow risers connected to them. Run it from flood areas, with major rivers and out to a slipway at the coast or too a reservoir or hydro battery for generating power at night.
Biden has called for a humanitarian pause in bombing Gaza after being heckled. The Man is no leader
Thankfully Michael D can still voice the truth Collective punishment of innocent men women and children in Gaza is an absolute violation of every moral political and humaniti and humanitarian laws A clear crime by an invading force into an already desperate country .Shame on Israel now the world can see this government for what it is
The usual nonsense from Limerick’s hanging judge (everything suspended) when dealing with hurler Pat Ryan. How, in God’s name does that pointless wig still have a job? What a waste of time, police resources, taxpayers’ money, and all to produce an empty, meaningless sentence. On and on it goes.
Wind power bonanza.
The Dutch super slow bike race faded out like a damp squib
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