Weak German bond sale 'alarm signal': Nowotny

23rd November 2011, Comments 0 comments

Weak demand for German bonds in an auction on Wednesday is an "alarm signal," Austria's central bank head and European Central Bank governing council member Ewald Nowotny said in Vienna.

Investors shunned Wednesday an issue of German 10-year bonds, considered the gold standard of eurozone debt, making bids of only 3.9 billion euros ($5.2 billion) for the 6.0 billion euros of securities on offer.

The German Finance Agency called a "reflection of the extraordinarily nervous market conditions."

© 2011 AFP

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