German Bond Auction Failure - Disaster For The Euro

Germany’s Auction ‘Disaster’ Stirs Crisis Concern

Germany failed to get bids for 35 percent of the 10-year bonds offered for sale today, propelling borrowing costs in Europe higher and the euro lower on concern the region’s debt crisis is driving away investors.
“This auction is nothing short of a disaster for Germany,” Mark Grant, a managing director at Southwest Securities Inc. in Fort Lauderdale,Florida, said by e-mail. “If the strongest nation in Europe has this kind of difficulty raising capital, one shudders concerning the upcoming auctions in other European nations.”
Turmoil that began more than two years ago in Greece and snared Ireland, Portugal, Italy and Spain has closed in on France and now risks engulfing Germany, the region’s biggest economy. Political leaders are struggling to find a fix for the crisis, with German Chancellor Angela Merkel rejecting proposals for common currency-area bonds, while the European Central Bank resists calls to boost sovereign-debt purchases.
The yield on Germany’s 2.25 percent securities maturing in September 2021 climbed 15 basis points to 2.06 percent at 4:46 p.m. London time. 
My view:

This is particularly bad news for the European Union and their currency the ill fated Euro.

If Germany does not pull out of the Euro, it is now apparent that the weaker & heavily debt laden economies of the EU may drag its economy down.

It appears that Eurogeddon has begun.