What this auction result says is that current German bond yields are insufficient to whet the appetite of investors and will have to move higher. This will in turn move the bond yields for other sovereign debt issuers higher as they move off of the German rates.
At a time when the last thing any in-trouble, soon to be in trouble or not yet in trouble nation needs are higher borrowing costs, it looks like that is exactly what they will be getting!
The one country for the most part still immune? The United States!
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