This is not my usual forte, but a German bond failed to cover. Against a €6 billion offer, the bids aggregated to just under €3.9 billion. FT’s Alphaville blog has a complicated explanation that makes no sense to me. Even if the Bundesbank bought the rest, the fact that the market did not bid enough to cover the offered amount is simply astounding. It appears the European financial crisis has just entered a new terrible phase.

Gott in Himmel!