BBC News: Reports that Italy had to pay a record high to shift its 10 year bonds, the rate was 6.504%. As the article notes this is double the last sell off of 10 year bonds, what is also alarming is the fact that two year Italian bonds are now at 7.814%, in essence the Market is telling the new Italian Government it does not have in till 2013 to solve the economic problems of Italy, it does not have that time to reform the public sector, the Market expects quick action, otherwise the 10 year bond price will go up again past 7%. The ECB is only buying these bonds on the secondary market, and Germany is still saying no for the ECB to issue Euro bonds or print money. Are we seeing the slow death of the Euro, the contagion like cancer might have gone the point of no return folks.
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