This week’s European data:
Key Data Points
German 10-year Bund 4 bps higher;
France no change in spread to the Bund;
Belgium no change;
Ireland 22 bps tighter;
Italy 21 bps tighter;
Spain 21 bps tighter;
Portugal 40 bps tighter;
Greece 6 bps tighter;
Large Eurozone banks weekly change, -6.13 to 3.16 percent;
Euro$ flat on the week, -0.01 percent.Comments
– Irish sovereign spreads continued to tighten and closed at the lowest level to the German Bund since the beginning of the crisis;
– Cyprus will not impose losses on bank depositors in its banks, the country’s finance minister says;
– Rumors out of Germany that Cypress bailout will cost €16bn;
– Portugal’s debt agency is confident that the country is poised to regain full access to bond market funding in the next few months, FT;
– Bepe Grillo’s Five Star Movement (M5S) is surging in the polls, boosted by the scandal at Italy’s third-biggest bank, Monte dei Paschidi Siena (MPS). If support for M5S increase, it could be in a position to block the formation of majority by either the left or right, which could trigger a new panic.Source: Guardian
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“Currency chatter is inappropriate, fruitless and self-defeating . . . We don’t believe that inflating budget deficits to create demand is sustainable.”
-Mario Draghi, ECB President
(click here if charts are not observable)
