The Big Picture - Macro Perspective on the Capital Markets, Economy, Technology, and Digital Media

The Greek 2 yr note yield is below 10% for the 1st time since mid Aug after a story that Norway continues to buy Greek debt along with that of Spain, Portugal and Italy. Also talking its position is the Greek Finance Minister who said on their deficit, “we feel confident that given where we are at the moment there won’t be any problem in hitting the target.” Another Greek official in an interview said with respect to the market’s belief of an inevitable debt restructuring, “no one is even contemplating or thinking about” that. If one believes this and trusts the EU backstop, a 2 yr yield around 10% is certainly alluring. As expected, the BoE left rates unchanged while the BoKorea surprisingly did not raise rates because of what they said is rising uncertainty in the outlook for global growth. Australia delivered a better than expected jobs report for Aug and the AUD is rallying to a 4 month high.