Financial Times FT.com

German bond sale’s fate signals trouble ahead

By David Oakley in London

Published: January 7 2009 13:30 | Last updated: January 7 2009 20:45

A German sovereign bond auction failed on Wednesday as investors shunned one of the most liquid and safe assets in the world in a warning for governments seeking to raise record amounts of debt to stimulate slowing economies.

The fate of the first eurozone bond auction of 2009 signals trouble ahead as governments around the world hope to issue an estimated $3,000bn in debt this year, three times more than in 2008.

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