While it’s often said no publicity is bad publicity Greece is a clear exception to the rule. Mentions of Greece in stories on the terminal are approaching its May 2010 high; corresponding with the period Greece first accepted an EU sponsored bailout. Greece’s more frequent mentions has come at a cost for the country and […]
Archive:
Europe
To subsribe please go to {BRIEF <GO>} on your terminal , or visit www.bloomberg.com/brief
When the Federal Reserve launched its unprecedented program of quantitative easing in early 2009, it was difficult to predict how various asset classes would react. Now, as the Fed considers a second round of asset purchases, the first program has left a blueprint of sorts behind that could be useful in predicting how markets might […]
The spread between France’s and Germany’s 10y Government bonds remain near levels not seen since the collapse of Lehman as France takes on tough fiscal tightening. Since the onset of the European debt crisis France and German yields have benefitted from worried investors moving funds away from economically weak Eurozone peripheries to the regions ‘stable’ AAA rated […]
The spreads for Europe’s economically weak peripheries over equivalent German bonds—the European benchmark—continue to approach their pre-bailout highs. The 10Y spread in Spain again reached record levels amidst rumors that IMF, EU and the U.S. Treasury may be creating a EUR250bn credit line for the country (so far the EU and the Treasury department have […]
Investors are feeling more at ease with the uncertainty facing global market. The AUD/JPY exchange rate—a popular FX carry trade and risk metric—has moved off of its recent lows of less than 74 to a level of 79.4. At the same time, 3M LIBOR halted its climb, and has remained fairly steady around 0.54%, albeit […]
France is no European angel in terms of its fundamental, yet like Germany the credit has received ‘safe-haven’ status from investors; that is until recently. French 10Y government bonds have traded mostly lockstep with equivalent German debt since the onset of the European debt crisis, but since the beginning of June the spread between the […]
Keep an eye on these government bond auctions, especially for Spain and Portugal, as a bad auction can provide the catalyst for further risk aversion: June 9th: 09:00 GMT Germany: 2y Schatz Auction €6bn 09:30 GMT Portugal: 3y and 10y auctions €1.5bn 09:30 GMT UK: New 2020 Gilt £3.75bn 17:00 GMT US: 10y Note Auction $21bn June 10th: […]
The aggregated spreads of Europe’s weakest peripheries plus Belgium are on track to test their pre-bailout levels, as investors question whether or not a default will become necessary and what contagion effects it might have. The biggest concern is that a default could lead to a Lehman like effect halting liquidity as banks and investors […]