Bonds: Italy still above 7%

Date: Tuesday 10 Jan 2012

The yield on 10 year Italian debt fell on Tuesday but remained above the 7% level that saw Ireland, Portugal and Greece needing a bailout.

These were the interest rates and movements on some of the most watched countries' 10 year bonds by the close:

Italy: 7.1% (-4bp)
Spain: 5.5% (-8bp)
France: 3.2% (-7bp)
UK: 2.08% (+7bp)
Germany: 1.88% (+4bp)
US: 1.96% (flat)

The head of the IMF, Christine Lagarde, met with the German Chancellor Angela Merkel, today, ahead of yet another EU summit on January 30.

The news on equities was good as European markets took their cue from strong company news from the US.

More sobering for the debt market, however, was news from the ECB revealing the use of its overnight deposit facility reached a new high last night, of €482bn, implying Eurozone banks are too frightened to lend.

BS

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