According to Bloomberg (chart below), German 10-Yr yields have doubled overnight. Bid to cover ratio was an extremely low 35%. Some unconfirmed reports indicate it’s the worst auction in Germany’s history since the start of the Euro. An ominous sign for Europe’s safe-haven asset.

That news coupled with weakness in China’s factory output has resulted in a wholesale liquidation of risk assets across all markets. The U.S. Dollar is up today.