It was exactly one year ago that
I announced the death of the Euro due to the fact that EU talks on the EFSF had stalled by 20.10.2010.
Now here we are one year later and the latest official statement by French president Nicolas Sarkozy after a late night meeting with German chancellor Angela Merkel on Wednesday was only a terse "
talks are stuck."
While this is not exactly news - that's been the situation since 2008 - Germany's first failed auction of 10 year Bunds is all the more and comes only a day after Spain could not sell the full allotment of €5 billion in short term treasury notes.
GET IT: Europe is not able anymore to raise the money it needs!
Germany's Failed Bund Auction Implies There Is No More European Benchmark
On Wednesday Germany had attempted to top up its September 2021 Bund by another €5 billion. Alas, there were no buyers for this amount. The Bundesbank drew only 4.5 billion in bids and had to retain €925 million for 'secondary market operations' on its own books. This is the first time in the history of post WW2 Germany that investors balked away from a German government bond issue.