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This article was published on February 27, 2015 at 09:35.
The last change is the February 27, 2015 at 09:58.
Performance weakness for European stocks traveling just above or below parity. The movement more relevant, in hindsight, regards government bonds. BTP-Bund spread on the ten-year maturity fell during the trading day, below the threshold of 100 basis points. This is, obviously, the effect-Q and the ECB. The plan for the purchase of government bonds by the European Central Bank, in fact, hit more and more of the same yields. In particular, those of the peripheral countries of the Eurozone.
So, for example, the ten-year BTP has a rate around 1.36%. That of the same maturity as the Spanish, at about 1.28%. These values, until not long ago, absolutely unthinkable. Which, not deny it, do not have any reference to the country risk and the socio-economic viability of the two States issuers. The proof? Comes from the US T-Bond. The title decades of Washington, in fact, a yield above 2%. Of course, as indicated by MPS Capital service, it is a trend due “to the data on inflation which, while falling below expectations, on a steady growth of wages in real terms.” Which reinforces the idea of elimination from their press release of the adjective ‘”patient” in reference to the attitude of the Fed on the timing of a rate hike. ” It, however, can not hide that having the rate on BTp much below that of the T-Bond is a strong contradiction. Which can only understand the effect, precisely, that of quantitative part to March.
Moreover, it was precisely Maria Cannata, head of the management of the public debt of the MEF, to confirm it. “Now that were announced details of Qe -said yesterday at a hearing in the House – we see every day in a fall in interest rates,” as well as that of a ‘big appetite for the securities of the suburbs. ”
that appetite which, however, does not seem to involve the public debt of Greece. There will also state the agreement between Athens and former Troika to extend by four months aid. The market does not seem to believe it, indicating a strong sense of pessimism. The yield curve is very Hellenic fact reversed. The deadline to 1 month makes 10.6%. One to three months down to 4.7%; Six months later, the rate drops again to 3.6%. The 2-year government, for its part, makes 13.7% while the five years has the yield of 12%. The ten-year, finally, is below 10%. In short, it is clear that these numbers indicate the persistence of the fire in that of Athens. A dynamic that, for now, does not seem to disturb investors as a whole. Everyone is waiting for the drug monetary Mario Draghi.
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