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Berlin suffered a calamitous debt issue considered

November 23, 2011

Germany has awarded Wednesday that just over half the amount of debt that she hoped to sell, wiping one of its worst sovereign issues since the inception of the euro because they have offered a sufficient return to investors.

Berlin has been sold for 3.644 billion euros in loans to ten years against 6 billion expected, so that the Bundesbank, the German central bank, had to buy the remaining 39% to avoid failure of the operation.

The very low yields offered by the Bund have dampened the appetite of investors, already concerned about the cost that will impose on Germany a spiral of debt crisis in Europe.

"This is a complete disaster, absolute," said Marc Oswald, strategist Monument Securities in London.

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