Spread between US 10Y and German 10Y suddenly widens …

The market seems to be forecasting increased fiscal integration which is, of course, just about the only way out of the Eurozone mess. In the short term probably not the best option for Germany but it works for everyone else.

This isn’t the first time a German Bund auction failed …

But it sure has folks all nervous and agitated. Some are calling it “nothing short of a disaster for Germany”. Best analogy I’ve read about the failed auction: “On the Titanic even first class passengers drowned“. Somewhat inappropriate. Somewhat.

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