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- Mark Grant, a managing director at Southwest Securities Inc.
A German sale of the 10 year bonds on Wednesday drew some of the weakest demand since the creation of the European monetary union as the country didn't get bids for 35 percent of the government securities. "This auction is nothing short of a disaster for Germany," Mark Grant, a managing director at Southwest Securities Inc. said.
"The auction reflects the deep mistrust [of the] euro project rather than a mistrust [of] German government bonds," said Danske's chief analyst Jens Peter Sorensen. "As some investors say regarding the euro project—if it is broke, then fix it."
"It [crisis] is now hitting the heart of Europe," said Simon Derrick of Bank of New York Mellon in London. "Germany has spent the last 25 years building the reputation of its sovereign-bond market, and it will not accept having Greece jeopardize that. Either Greece conforms to the euro rules, or it knows where the door is."