Grants breathe again. The English government bond auction went well. The English Treasury has made an issue of 2.468 million of Treasury bonds to three years. The demand was good, amounted to 5.59 billion within the range expected, but Madrid had to grant a rate soaring to the sheet to attract more.
go wrong instead of the titles. Moreover, the pending auction of government securities in five years (bobl) of Germany today received fewer requests than supply, as well as demonstrating the debt market is not protected from the German market tensions. In view of the 5 billion auction, the German federal agency that manages the issuance of debt securities have been calls for only € 4.55 billion. The failure of the auction at 5 years immediately had an impact on the Bund where the rate rose to 2.769% from 2.67% yesterday. Important
the ECB's monetary policy meeting today, that Trichet will decide on interest rates.
Meanwhile, the Wall Street Journal slams the front page that Italy and Spain, together with Portugal, seem to be more at risk of contagion from the crisis of sovereign debt in Europe, and would be at the forefront in asking the ECB more decisive steps to combat the crisis.
These news plus the opinion of the Nobel Prize for Economics Edward Prescott declares that "Italy's economy is bad, we hope that there will be an agreement on structural reforms and then you can complete them. We need to promote productivity growth, reduce expenses and taxes, because tax means depresses the country. "
Thanks, I wanted Prescott to understand that we are not in good shape.
The truth is that you are just trying to buy time. Greece, Ireland and Portugal are already insolvent and Spain following close behind them. And if it is up to Spain the situation overwhelm even Italy.
So enjoy the calm before the arrival of the next storm.
Salvatore Tamburro
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