Debate seems to be taking shape over what form a financial bailout package would be structured for Greece. Top EU officials and an ECB member are meeting there today. More detail and thus more confidence that the support is there is sending Greek 10 yr bond yields down to a 2 week low and the 2 yr yield to a 3 day low. Bonds in Spain, Portugal, and Ireland are also rallying and CDS in all are narrowing. The UK pound is getting slammed vs the US$, falling .035, its worst decline since Mar ’09 and to below the 1.50 level. The main catalyst is the concern that whoever will be the new PM will be so without a majority and thus will have difficulty getting things done. The US$ is up vs the euro too notwithstanding the optimism on Greece. China’s public sector weighted manufacturing index was 3.2 pts below expectations and at a 1 yr low. The private sector weighted # fell to 55.8 from 57.4. Chinese steps to cool their economy seem to be working.
Read this next.
Previous PostNYTimes Goes Media Crazy