Hungary sells 35billion of 10 years bonds, seeking to sell 45 Billion, yield at 9.9%** Not as bad as Portugal at 13.37%
** Just a little over Ireland at 8.207%
** And of course Greece at 34.955%
Meanwhile : The Frankfurter Allgemeine thinks recessions will be good for countries like Greece, which have debt problems, so they will be chuffed about the Irish double dip, no doubt. Deutschland geht es gut, noch.....is the motto. They seem to think that as the crisis only affects small countries like Greece, Ireland and Portugal, and don't see the knock on.. The UK will also be hit, as Eire is the UK's main trading partner. Portugal is important to Spain, Spain is important to France. The Greek crisis is a disaster for its Balkan neighbors, and they are important for Italy. Am listening to the German EU Commissioner Günter Öttinger on SWR1, it will be interesting to hear what he says about he Eurocrisis. He fell foul of Merkel and was kicked upstairs to the EU by her a couple of years ago. She managed to shift several such nuisances: Christian Wulff, and Roland Koch are no longer Minister Presidents, Stefan Mappus also opposed her and has now left politics.
2 comments:
"Billionaire investor George Soros said a fracturing of the
euro area would have “catastrophic” consequences and that markets have
started pricing in the possibility of the region breaking up"
Well I can appreciate why this billionaire is concerned...that said if his billions dropped to millions he would still survive, whereas if my disposal income dropped from £'s to pence I would not...
It is all about perspective.
The euro has dropped to its lowest rate against the dollar in 16 months after France sold 8bn euros ($10.3bn, £6.6bn) of bonds at an auction.
The euro fell to $1.2831 against the dollar and was at an 11-year low versus the yen.
France paid an interest rate of 3.29% to borrow for 10 years, up from 3.18% at the last sale in December.
Many investors fear that France is poised to lose its top credit rating, making it more expensive to borrow.
In December, France saw its AAA credit rating placed on negative outlook by rating agency Fitch.
Fitch said the change in outlook was prompted by the heightened risk of government liabilities arising from the eurozone's debt crisis.
At Thursday's sale, demand from investors for the benchmark 10-year bonds had fallen.
The bid-to-cover ratio was 1.64, almost half of the 3.05 it was in the December auction.
France introduced an 65bn-euro austerity plan in November
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