Italy on December 14 auction of five-year notes, with its yield rate to create the euro on the road to the highest, with Germany showing the bipolar trend. Italy rising debt service costs, plus Spanish banks last month to the European Central Bank loan amount, record year, the largest and Sweden frankly uncertain whether the signing of the EU financial protocol, the impact of European stocks fell 1 percent, the euro depreciate breaking $ 1.3 for the January to a minimum.
According to Taiwan media reports, the euro against the dollar on the 14th lowest decline to $ 1.2965, its lowest level since January 12 in intraday trading has always been unable to return to the more than $ 1.3 demoted to ¥ 101.21 against the yen ten week low. Dow Jones EU Stoxx 50 index fell 1.8 percent. Italy's 10-year bond yield rose 4 basis points to 6.72 percent, approaching a record high debt guarantee Europe the cost of default.
Italy on the 14th auction of five-year bonds, to raise 3 billion euros ($ 3.9 billion) to reach the target upper limit; but the average with its yield at 6.47% since the euro's launch, reflecting investors' demand tender multiples of 1.42 times, not as good as last month's yield of 6.42% and over-subscribed 1.47 times.
Although the Italian treasury is still a surplus, representing simply the repurchase of bonds, but the deficit still worrying. If the yield is high, the debt service interest will surge. Prime Minister Tremonti has rushed to approve the € 30 billion austerity program, on the 13th night the signing of the congressional committees this week, is expected to be put to the vote.
German bond is obviously still the most reliable assets in the minds of investors. Germany's central bank auctions the same day, two-year note, which raised 4.18 billion euros, the average yield of 0.29 percent, its lowest level since the record euro road tender in multiples of 1.4 times.
, according to Bloomberg statistics, the German government bonds this year, rate of return is 8.5%, Italian government bonds this year to lose 7.6%.
In addition, the Bank of Spain data show that local banks are facing funding pressure. West country lending banks last month to an average of the European Central Bank to raise 98 billion euros, the amount of innovation in September last year, the highest increase in absolute terms is since June last year, maximum, mean difficult for banks to finance through other pipelines.
highly concerned about the progress of the EU budget agreement, but the 13 Swedish Prime Minister Reinfeldt Fredrik into Reinfeldt's uncertain whether it will sign this agreement to strengthen fiscal discipline binding, just like on dampen the enthusiasm of most of the EU countries.
