The screw tightens
Nov 23rd 2011, 13:26 by C.O. | LONDON
The Economist
ONE can almost hear the gates clanging: one after the other
the sources of funding for Europe ’s banks are
being shut. It is a result of the highly visible run on Europe ’s
government bond markets, which today reached the heart of the euro zone: an
auction of new German bonds failed to generate enough demand for the full
amount, causing a drop in bond prices (and prompting the Bundesbank to buy 39%
of the bonds offered, according to Reuters).