Market sovereign debt of European countries experienced a new shock. Yield of government bonds in Italy has updated the historical maximum, reached at auction July 11 5.46% mark. Investors are getting rid of sovereign debt in Italy, because they fear that the debt crisis in the peripheral countries is growing. The fact that yields on sovereign debt of Spain and Ireland also reached new historical highs, but has become another proof of this.
July 11 at auction in Europe the yield on ten-year government bonds in Italy has set a new historical maximum. In the course of trading, it rose to 5.46%. Rose to a historic high yield and ten-year government securities Ireland - 13.5% per annum. Continuous improvement in profitability continues the second consecutive month, the last two weeks of growth accelerated. Back in January and February was significantly lower rate of return: Italian bonds - 4,5-4,9%, Irish - 8.5-9.5%. Up to a maximum in 1997 - a mark of 5.8% - also has risen ten-year yield of Spanish bonds. The highest yields in the euro area to date is from the Greek government obligations - 17.2% per annum. However, for the Greek market is not a record - in the middle of June, their yield reached 18.7% per annum.
Another round of flight from the sovereign obligations of the peripheral countries was triggered by reports that the President of the European Council has appointed Herman Van Rompuy on the morning of July 11 an emergency meeting concerning the debt crisis in the eurozone, which may discuss the issue of financial distress of Italy, the third of the regional economy. This is with reference to the sources says The New York Times. EU officials deny the information that this issue is on the agenda of the meeting. The representative of Van Rompuy Dirk De Baker told the news agency Reuters, that it would be "coordination, not a crisis meeting." He added that Italy is not included in the agenda, and refused to talk about the subject matter. However, the two official source told Reuters, that the situation in Italy will still be discussed. In their version, the discussion was organized after a sharp sell-Italian assets, which occurred late last week, when the cost of borrowing for the Italian financial market had grown to 5.3% on a 10-year bonds, and the Italian stock market fell by 3.5%. Investors are concerned about high levels of debt in Italy, is 120% of GDP. Concern is the political situation in the country. The positions of Prime Minister Silvio Berlusconi has weakened, any controversy with respect to the economic program of study between him and Finance Minister Giulio Tremonti.
At the auction on July 11 the sale proceeded. By 14.20 the Italian stock market fell another 1.4%.
July 11 at auction in Europe the yield on ten-year government bonds in Italy has set a new historical maximum. In the course of trading, it rose to 5.46%. Rose to a historic high yield and ten-year government securities Ireland - 13.5% per annum. Continuous improvement in profitability continues the second consecutive month, the last two weeks of growth accelerated. Back in January and February was significantly lower rate of return: Italian bonds - 4,5-4,9%, Irish - 8.5-9.5%. Up to a maximum in 1997 - a mark of 5.8% - also has risen ten-year yield of Spanish bonds. The highest yields in the euro area to date is from the Greek government obligations - 17.2% per annum. However, for the Greek market is not a record - in the middle of June, their yield reached 18.7% per annum.
Another round of flight from the sovereign obligations of the peripheral countries was triggered by reports that the President of the European Council has appointed Herman Van Rompuy on the morning of July 11 an emergency meeting concerning the debt crisis in the eurozone, which may discuss the issue of financial distress of Italy, the third of the regional economy. This is with reference to the sources says The New York Times. EU officials deny the information that this issue is on the agenda of the meeting. The representative of Van Rompuy Dirk De Baker told the news agency Reuters, that it would be "coordination, not a crisis meeting." He added that Italy is not included in the agenda, and refused to talk about the subject matter. However, the two official source told Reuters, that the situation in Italy will still be discussed. In their version, the discussion was organized after a sharp sell-Italian assets, which occurred late last week, when the cost of borrowing for the Italian financial market had grown to 5.3% on a 10-year bonds, and the Italian stock market fell by 3.5%. Investors are concerned about high levels of debt in Italy, is 120% of GDP. Concern is the political situation in the country. The positions of Prime Minister Silvio Berlusconi has weakened, any controversy with respect to the economic program of study between him and Finance Minister Giulio Tremonti.
At the auction on July 11 the sale proceeded. By 14.20 the Italian stock market fell another 1.4%.
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