Those same investors could have bought 10-year French debt for 3.179pc.

The banks print money and use it to buy a bond or debt.

Bank trust departments, for example, buy only high-quality short-term debt.

They would then buy discounted Brazilian debt with a face value of, say, $8 billion.

Britain, he added should "count itself lucky" it had a central bank able to buy debt.

The government, by closing the financial account, would force the private sector to buy domestic debt in the lack of other alternative.

If this happens, then it's the market pulling back from buying debt - really bad news.

Hedge funds, which borrowed money to buy debt, were the biggest losers.

Oh, please do buy European debt - lots of it.

Prices for buying or selling debt are getting easier to obtain.