AlHijjah 27, 1432, Nov 23, 2011, SPA -- The tensions on eurozone government bond markets escalated Wednesday after demand for a German government bond auction fell short of what was targeted, dpa reported. Demand for the 10-year bund represented only about 35 per cent of the 6 billion euros (8.02 billion dollars) that was on offer. This added to signs that investors are turning away from the region's debt markets. "I have never seen Germany being unable to sell such a high share of an auction," said analyst Rudolph Messer from Bankhaus HSBC Trinkhaus. While the yields on 10-year French and Belgian bonds climbed Wednesday, the European Central Bank was understood to have stepped into Italy's and Spain's government bond market to stem the rise of borrowing costs.
