As seen last week, as Italian yields go, so goes the S&P’s. Today though, the market is also getting around to Spanish bonds as their 2 yr note yield is rising to the highest since July ’08. Belgium’s 10 yr yield is up at the highest since Jan ’09. ECB member Weidmann repeated that the ECB will not come to everyone’s rescue by saying “the co-option of monetary policy for fiscal needs must come to an end.” He knows that governments will step away from tough choices if they assume the ECB will step in. Italy sold 5 yr notes at a yield of 6.29%, up 97 bps from the one sold last month. They sold the full 3b euros they hoped for at a bid to cover slightly above last month as Mario Monti will be the new PM for now. Today’s front page WSJ article on Italian business highlights why their economy has barely grown over the past 10+ years. In Asia, Japan’s Q3 GDP rose 6% after 3 Q’s in a row of contraction. India reported Oct wholesale inflation at 9.73%, a touch above estimates and remains very sticky notwithstanding an aggressive tightening strategy.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.