IPFS News Link • Economy - International
Germany’s auction flop another European debt headache; France warned on rating again
• washingtonpost.comGermany is Europe’s biggest, most solid economy and the linchpin for all bailouts of troubled economies in the 17-nation eurozone. Investors’ reticence to buy safe German debt at low interest rates speaks volumes about the uncertainty weighing on the continent, where refinancing conditions for governments and banks are rapidly deteriorating.
The flopped German auction of 10-year bonds caused stocks to drop around the world, including in the United States, and sent the euro sliding to a seven-week low against the dollar. By evening, the euro was trading 1.2 percent lower on the day at $1.3357.
“If Germany can’t sell bonds, what is the rest of Europe going to do?” asked Benjamin Reitzes, an analyst at BMO Capital Markets.