NO RELIEF IN EURO CREDIT MARKETS
Via Bondsquawk.com:
Across the Atlantic, government bond yields for developed economies were flat to slightly lower. The yield on German 5-Year Bunds traded 3 basis points lower to 1.55 percent while France’s got dressed up for nothing by finishing where it started and closed at 2.03 percent. 5-Year U.K. Gilts were also flat to slightly lower and ended at 2.15 percent.
Greece government bond yields continue to widen reaching double digits across the curve as concerns of a default or restructuring weigh on the market. The yield on the 2-Year spiked 72 basis points to 10.02 percent. The 5-Year reached a yield of 10.77 percent, an jump of 59 basis points while the yield on the 10-Year increased 57 basis points and now stands at 10.37 percent. The last time the 10-Year reached double digits in yield was in early May and right before the unveiling of the EU’s rescue package.
The other PIIGS followed suit as bond yields widened. Portugal was the worst of the bunch (ex Greece) as the 5-Year climbed 17 basis points to 4.73 percent. Ireland and Italy bond yields each increased 5 basis points to 4.60 and 2.89 percent, respectively. Spain managed to widen only 4 basis points on their 5-Year bonds to a yield of 3.74 percent.
It doesn’t help when people like George Soros are saying that Germany could cause the Euro to Collapse. Now the EU is also talking about a global transaction tax. Let’s just keep expanding government.