France 10-Year Government Bonds
Germany 10-Year Government Bonds
Italy 10-Year Government Bonds
Portugal 10-Year Government Bonds
Spain 10-Year Government Bonds
Greece 1-Year Government Bonds
French Bond Yields Jump Most Since 2008
Bloomberg reports French Bond Yields Jump Most Since 2008 on Bank Concern
Ten-year French yields climbed 38 basis points this week, the most since the euro was introduced in 1999. The extra yield investors demand to hold 10-year French bonds instead of German bunds also expanded to the most since the euro started. Spain’s 10-year bonds fell for a fifth day after Standard & Poor’s cut the nation’s credit rating. Yields climbed across the euro area after European Central Bank President Jean-Claude Trichet said the ECB will not act as a “lender of last resort.”Trichet a Proven Liar
The eight largest U.S. money-market funds reduced their lending to French banks by 44 percent last month, according to filings compiled by Bloomberg and published in today’s Bloomberg Risk newsletter.
Spanish 10-year yields climbed four basis points to 5.24 percent, even after the ECB was said by people with knowledge of the deals to have bought the nation’s securities. S&P cut Spain’s ranking by one level to AA-, with the outlook remaining negative, the company said yesterday.
Portugal Faces National Emergency
Portugal 10-year yield increased five basis points to 11.64 percent. The nation is planning to deepen budget cuts next year as it faces a moment of “national emergency,” and has to do more to meet its budget goals, Prime Minister Pedro Passos Coelho said.
Does this look like anything has been contained or does it look like the problem is spreading to France (as a result of foolish containment efforts)?
By the way, Trichet is a proven liar. The ECB is already acting as a lender of last resort by supporting Italian bonds and foolishly buying Greek bonds previously.
Mike "Mish" Shedlock
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