It has come to this...
According to BusinessInsider, when measured by demand, Germany apparently just had one of its worst bond auctions ever. The rock of Europe is seeing less enthusiasm for its debt. Specifically, according to Nomura, total bids at the auction came to 3.9 billion EUR vs. 6 billion EUR issued.
It's a very rare day, when markets are in risk off mode, but German bund yields are actually going higher.
Much like US Treasuries, German bund yields almost always go lower on risk off days.
This is actually something that's been in development for awhile. Morgan Stanley noted on November 17, that while peripheral yields were jumping, German bund yields had stopped falling, signifying a shift in investor behavior: Rather than moving money around intra-Europe, money was fleeing Europe altogether.
Holy cow readers, it looks like we're going to have a historic December!
Don't take our word for it. Check out the charts at: http://www.businessinsider.com/german-bond-auction-weak-2011-11#ixzz1eYEpn21t
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