Breaking up is hard to do – even for stoic Germany

June 15, 2012

German Bund futures have just had their second straight week of losses. This has left many scratching their heads given the timing – right before Greek elections that could decide the country’s future in the euro and the next phase of the euro zone debt crisis. That sort of uncertainty would normally bolster bunds, which are seen as a safe-haven because of the country’s economic strength.

Law of diminishing returns

By Mike Peacock
June 12, 2012

The law of diminishing returns?
The first euro zone bailout, of Greece, bought a few months of respite, the next ones bought weeks, latterly it was days. Now … hours. Spanish bond yields ended higher on the day and, more worryingly, Italy’s 10-year broke above six percent. It was always unlikely the deal to revive Spanish banks was going to lead to a durable market rally with make-or-break Greek elections looming on Sunday but there were other things at play.

Foreign investors still buying American

April 17, 2012

Overseas investors have yet to sour towards U.S. assets despite high government debt levels, according the latest figures on capital flows.

The going gets tougher for Italy and Spain

April 12, 2012

One trillion euros is a lot of money. And as we have previously noted on this blog it did a lot for stock markets early this year but not much for the real economy.

Ireland’s uneasy market comeback

March 26, 2012

Ireland, hailed as the poster child of euro zone austerity, is hoping to get back into the long-term bond market this year. But analysts say a hasty return could do more harm than good.

Vultures swoop on Argentina

February 29, 2012

Holdouts against a settlement of Argentina’s defaulted debt are opening a new front in their campaign for a juicy payout more than a decade after the biggest sovereign default on record.

Why Germany doesn’t want euro zone bonds

February 27, 2012

Ever wanted to know why Germany is not keen on single euro zone bonds? Look no further:

from Mike Dolan:

Sparring with central banks

January 31, 2012

Just one look at the whoosh higher in global markets in January and you'd be forgiven smug faith in the hoary old market adage of "Don't fight the Fed" -- or to update the phrase less pithily for the modern, globalised marketplace: "Don't fight the world's central banks". (or "Don't Battle the Banks", maybe?)

Money funds cut Europe exposure, slowly

January 11, 2012

Prime U.S. money funds further reduced their holdings of euro zone bank paper in December, although the pace of movement slowed while investors continued to hedge against any bank failures, J.P. Morgan Securities said on Wednesday.  The slower movement out of euro zone bank paper was the result of money funds having already strongly reduced their holdings, J.P. Morgan said in a note to clients.

Europe sobers up after Italian auction

October 28, 2011

After a hopeful couple of weeks and the ”euphoria” caused by an agreement to tackle the euro zone debt crisis, financial markets got a reality check from Italy’s sale of 7.94 billion euros of government bonds. The debt met lower demand than at previous auctions, forcing the country to pay the highest premium since joining the single currency to sell 10-year debt.