The French term "coq-a-l'ane" has the same meaning. This was later taken up in Scots as "**********", again with the same meaning.
The first citation in English is from Robert Burton's The anatomy of melancholy, 1621:
"Some mens whole delight is to talk of a **** and Bull over a pot."
http://www.phrases.org.uk/meanings/****%20and% 20bull%20story.html
Unfortunately, the origins of "**** and bull story," which first appeared in English around 1620, are a bit fuzzy. Perhaps the most frequently-heard explanation ties the phrase to an old English roadside inn of the period supposedly called The **** and Bull. Weary travelers, it is said, would often pass the evenings regaling each other with fantastic tales of their exploits and adventures, and so such stories became known as "**** and Bull tales." Predictably, however, no such inn can be proven ever to have existed, making this theory, if not a "**** and bull story" itself, at least highly suspect.
A more likely explanation is that "**** and bull story" originally referred to the sort of folk tale or fable, popular at the time, populated by talking animals. A parallel of "**** and bull" can be found in French, where the same sort of whopper is known as a "coq-a-l'ane," or "**** to donkey" story. (The French "coq-a-l'ane," incidentally, was imported into Scots, the language of Scotland, as "**********," meaning a fantastic or satirical story.)
http://www.word-detective.com/030201.html#**** *******