Chillin' out till it needs to be funded
European markets rallied even as governments put their hands down and ECB buying remained limited at $ 8.6 bln last week Tail risks in 0 year Bund yields show up though but Europe is more or less setled into its rut, with further rescues not coming from the $1 Tln ECB Bazooka fund, nor the leaked plans of the Top 5 nations issuing quasi “Euro bonds” making any dent in the market expectations either way Also an interesting watch is this live analysis of last week’s bond buying data, emphasising markets keen to muddle through Sovereign Auctions on watch this week are also moderate in size at $16 bln and not much of a risk though the market is watching keenly. Auctions are due first in Italy then Spain and France. Yields were sharply down in opening trades today though Moodys’ reminded everyone that downgrades could cascade again within the EZ soon.
Germany insisted Monday that it has no plans to float bonds together with the eurozone‘s five other triple A rated nations and use the proceeds to provide assistance to some of the single currency bloc’s indebted members, such as Italy and Spain.(CSM)
Eurozone plans seem to have left markets no choice but to leave it behind them, Mario Monti’s holiday tax providing a breather enough
(Reuters) The OECD rich nations’ economic think-tank said the European Central Bank should cut interest rates and step up purchases of government bonds to restore confidence in the euro area, which now posed the main risk to the world economy.
In Brussels, finance ministers of the 17-nation currency area meeting on Tuesday are due to approve detailed arrangements for scaling up the European Financial Stability Facility rescue fund to help prevent contagion in bond markets, and release a vital aid lifeline for Greece.
Berlin and Paris aim to outline proposals for a fiscal union before a European Union summit on December 9 increasingly seen by investors as possibly the last chance to avert a breakdown of the single currency area
The OECD report’s harp as usual after the experts have spoken and gone to sleep, seemed more like disappointment at the lack of transmission of the crisis to the US as “only 2% of US GDP is impacted by Euro imports” and agreed that interconnected markets will create a crisis in the US from the Euro crisis as the Euro itself remains above $1.35 with talks of the EFSF extension being approved though not enough.