Bonds: Italian yields remain above 7%

Date: Friday 06 Jan 2012

The yield on Italian 10 year bonds stayed above 7% today, the level at which Portugal, Ireland and Greece all had to seek bail outs. These were the yields and movements on the 10 year bonds of some of the most watched countries:

Italy 7.13% (+4bp)
Spain 5.71% (+7bp)
France 3.37% (+1.6bp)
UK 2.02% (-4bp)
Germany 1.85% (-1bp)
US 1.95% (-4bp)

The major news was that the US economy added 200,000 new jobs in December according to figures from the Labour Department.

In Europe however there were confusing signals emanating from the Netherlands. The Prime Minister Mark Rutte was thought to have said he agreed with Germany’s position that the bail out fund, known as the EFSF, should not be boosted beyond €500bn.

Later, however, the Dutch member of the ECB’s Governing Council, Klaas Knot, suggested that Germany was alone in standing against increasing the fire power of the fund.

In macro news, retail sales in the Eurozone fell 0.8% between October and November while the single currency area’s unemployment rate remained stubbornly at 10.3%.

BS

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