Wednesday, November 16, 2011

Euro Bonds Burn

From The Hong Kong Standard:

Amid concern that the European debt crisis is escalating, Spanish bonds fell - pushing 10-year yields to a record relative to safe-haven German bunds.

Yields later continued the surge higher - to 6.27 percent - after a disappointing auction of Spanish bills. The key level is seen as 7 percent, where other debt-hit countries had to seek financial help from outside groups.

Italian securities also declined as premier-in-waiting Mario Monti faced political resistance in forming a Cabinet for his so-called technocrat government.

The extra yield investors demand to hold French, Belgian and Austrian debt instead of bunds widened to euro-era records after German Chancellor Angela Merkel's party voted to allow euro states to quit the currency area.

"At this stage there's fear," said Achilleas Georgolopoulos, a fixed- income strategist at Lloyds Bank Corporate Markets in London. "You have the same disbelief about Italian politics and that's apparent in Italian spreads widening today. Spain is following." on

No comments:

Post a Comment