Italy bond auctions were acceptable; 10-year bonds went well on a healthy demand. Pattern of decreasing yields continues so all and all an acceptable auction result for Italy.
10-Year Yields:
Greece 33.66%
Portugal 15.63%
Hungary 8.77%
Italy 6.18%
Spain 5.08%
Belgium 3.73%
U.K. 2.00%
U.S. 1.86%
Germany 1.86%
The E.U. Summit is ongoing today. Euro leaders will make a pledge to pursue growth policies. Considering this news, what have they been doing for the last two years!!? Portugal continues to blow out, the 10-year is now 80 basis points above Friday morning's yield. Portugal's yield curve is inverting signaling recession ahead, the 5-year is at 20.64% and 10-year at 15.63%. The Portugal 2-year is over 18% moving up.
The Greece talks with bondholders continue. Leaders say that an agreement is reached and will be announced this week. Promises, promises. With the goal line continual pushed forward, the Greece talks have now become a joke. The 3/20/12 deadline date for funding for Greece remains in place and the deal should occur before then even though they only inch slowly towards an agreement each day. Hungary is flat. Italy is back above 6%. France remains above 3%. The flight to safety to the U.S. and Germany continues, the perceived strong economies, both now sporting matching yields at 1.86%.
Yeah everything is hunky dory on the SS Titanic.
ReplyDeleteGlobal warming has ensured that there are no more icebergs for the global economy to collide with.