Key Data Points
German 10-year Bund 5 bps higher;
France 1 bp wider to the Bund;
Belgium 9 bps tighter;
Ireland 9 bps tighter;
Italy 13 bps tighter;
Spain 17 bps tighter;
Portugal 12 bps tighter;
Greece 50 bps wider;
Large Eurozone banks up 5-12 percent;
Euro$ up 2.11 percent.

 

Comments
- Ireland, Italy, and Portugal bond yields fall to post-Eurozone debt crisis lows;
- Ireland sold €2.5 billion of  5-year bonds at 3.35 percent;
- Italy sold €3.5 billion 3-year bonds at 1.85 percent;
- Spain sold €5.8 billion of two-, five-, and 13-year bonds at yields of 2.587, 4.03 and 5.57 percent, respectively.  The auction was strongly oversubscribed;
- The ECB left  interest rates unchanged;
- Greece’s unemployment rate  soared to 26.8 percent—the highest rate ever recorded in the European Union;
- Moody’s slashed Cyprus’ credit rating three notches to Caa3 as negotiations over the €17  billion aid package remains deadlocked and banking systems remains under heavy pressure.
 

…let’s not forget about one thing. We speak a lot about contagion when things go poorly, but I believe that there is also contagion, positive contagion, when things go well. And I think this is in play now. There is positive contagion.

- Mario Draghi,  ECB President

Jan11_EZ_Yield Converge

(click here if chart is not observable)

Category: Markets

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.

2 Responses to “Weekly Eurozone Watch – “Positive Contagion””

  1. RW says:

    I tend to agree: The signs for Europe are surprisingly positive …except for Greece whose problems seem to remain largely intractable.

  2. V says:

    Positive contagion, is the new subprime is contained. Will go down in the annals of most stupid central bank comments ever.