Yields on Italian bonds are dropping sharply. The yield on 10 year bonds is over 4% to 6.6%. This is still very high, but already further away from scary 7% level. Yields on 2 year notes are falling faster: over 5.6% to 6.04%. The ECB is probably very active in the markets. Only a return … “Italian Yields Free-Falling – EUR/USD Doesn’t Really Celebrate”
Category: Forex Bits
France Moves South – According to the Bonds
The gap between German bunds and French OATS continues rising. French yields are currently at 3.30%, while German ones are at 1.75%. The gap of 1.55% isn’t the worse we have seen – it passed 1.60% earlier. France is in the middle between the “Club Med” or PIIGS countries and the richer northern countries. The … “France Moves South – According to the Bonds”
LCH.Clearnet SA raises Deposit Factors On Italian Debt
After many days of rises in Italian yields across the board, the rumors finally materialized: it is now harder to buy Italian debt. The decision applies to all maturities. This is what happened with Greece, Portugal and Ireland. Italian 10 year bond yields are at 6.77%, close to to yesterday’s numbers, but they will likely … “LCH.Clearnet SA raises Deposit Factors On Italian Debt”
Goldman Sachs to Go Under – Roubini
Dr. Nouriel Roubini, also known as “Dr. Doom” for foreseeing the financial crash of 2008, said the Goldman Sachs may be the next financial entity to collapse. Roubini says that more financial firms could follow the lead of MF Global and names a few more candidates: Morgan Stanley, Jefferies and Barclays. Leverage is still a … “Goldman Sachs to Go Under – Roubini”
Leverate Opens Two Datacenters in London
Leverate, a software provider for the forex industry, invested more than $500,000 in two new datacenters in the City of London. All the company’s services are planned to migrate to these datacenters by the end of the year. This investment aims to improve performance and execution. This is another move forward by the software provide, … “Leverate Opens Two Datacenters in London”
US Banks Aren’t So Much Better than European Banks
European banks are exposed to Greek and other peripheral sovereign debt. Their leverage is very high and quite dangerous. The official pledge by European leaders to recapitalize the banks puts even more pressure and focus on the old continent. In the US, banks have been hit harder at the beginning of the crisis, and with lower leverage, … “US Banks Aren’t So Much Better than European Banks”
UK Services PMI Slides More Than Expected
Britain’s services sector has slowed down in October according to the fresh purchasing managers’ index: the score dropped from 52.9 to 51.3, more than a drop to 51.9 that was expected. The impact on GBP/USD is minimal, as this surprise isn’t so dramatic. Britain’s construction sector provided an upside surprise by jumping to 53.9 points, … “UK Services PMI Slides More Than Expected”
Pressure on Italy Mounting – Also in the Short Term
10 year bonds continued moving higher, floating between 6.3% and 6.4%. These are very high and unsustainable levels. These benchmark bonds are important, but the bigger drama is in the shorter term bonds, where significant and worrying breakouts have been made, but they were not always noted. The ECB is active in buying Italian bonds. … “Pressure on Italy Mounting – Also in the Short Term”
2 European Banks Remain Starved Out of Dollars
Two European banks could not get access to funding in US dollars. They had to go to the European Central Bank, which issues euros, not dollars, in their need for cash. They just couldn’t get it from their peers. The total sum is only $505 million, but this is still worrying. Usually there’s one only … “2 European Banks Remain Starved Out of Dollars”
British Construction PMI Jumps, GBP/USD Unconviced
According to the latest purchasing managers’ index for October, Britain’s construction sector is growing nicely once again: the score rose from 50.1 to 53.9 points. Early expectations stood on no change. 50 points is the line that separates contraction from expansion. GBP/USD rose a bit at first, but then dropped back down to around 1.60. … “British Construction PMI Jumps, GBP/USD Unconviced”