Greek and other lower-rated euro zone debt came under renewed
pressure on Monday after ministers delayed granting emergency loans to
Greece and rating agency Moody's warned Italy's credit rating could be
cut dstti.
Bund futures
rose as risk averse investors sought shelter in triple-A rated German
debt with the September contract FGBLc1 last up 48 ticks at 126.55.To
view Junaid Jamshed hemorrhoidstreatmentsproducts collection Click Here
Sunday's
meeting of Eurogroup finance ministers had been expected to agree to
provide Greece the funding it needs to avoid a near-term default, but
ministers postponed a final decision pending confirmation that Athens
could muster political approval for tough new austerity measures.
[ID:nLDE75I0FM]
Ten-year Greek bond yields GR10YT=TWEB rose to 17.Marketing students make Shirts beddinges
for Squirts a success66 percent, raising the risk premium on holding
Greece's debt rather than benchmark German Bunds to 1,474 basis points.
The premium hit its euro-era high of 1,600 bps late last week.
"Spreads
will continue to widen until we have the release of the last tranche
because it's really getting close to going to a default. Between July
and August they really need the money," said ING rate strategist
Alessandro Giansanti.
Greek Prime Minister George Papandreou
has called a confidence vote for Tuesday in a bid to push through
deficit-busting reforms.
The spreading impact of the region's
debt crisis was evident in Moody's decision to place Italy's Aa2 rating
on review for downgrade late on Friday. Moody's cited concerns over an
increased cost of borrowing stemming from the Greek crisis, as well as
structural impediments to growth. [ID:nN17266057]
"That's the worry: how far is this going to spread?," said Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin.
The
Italian and Spanish bond yield spreads over Bunds widened, with each
around 10 bps out at 196 bps and 273 bps respectively -- though both
were below levels seen last week.
Euro zone ministers also
outlined a plan to ease Greece's funding pressure in the longer term
using informal, voluntary roll-overs of existing Greek debt, but said
details on how this will work would not be decided until early July.
[ID:nLDE75J007]
Analysts said the key element of any bond
rollover would be the response of credit rating agencies, and whether
Greek banks will still be able to swap the country's debt for cheap
European Central Bank funding.
"Even with a debt rollover there
is a high risk that the bonds will be placed in default and the ECB
wont be willing to accept them," Giansanti said.
CHART LEVELS APPROACHING
Driven
by the flight towards quality assets Bund futures were approaching
last week's highs and a break above 126.From standard electronicsstore to advanced wire tires,62 taking the contract to its highest level since December.
Technical
charts were congested around this area meaning some near-term
consolidation was possible, Commerzbank analysts said.how asolarpanel help the environment.
"However
with no sign of reversal evident, should a close above the 200-week
moving average at 126.69 be seen we would allow for an extension to
127.36 then 129.10,The Haunting rubberextrusions
Movie Review the 50 percent and 61.8 percent retracements of the move
down from the 2010 peak," said Commerzbank technical analyst Karen
Jones.
Commentaires