Bonds: Yields stable as IMF enters the fray

Date: Wednesday 18 Jan 2012

These were the yields and movements on the benchmark 10 year bonds of some of the most watched countries:

Italy: 6.42% (-8bp)
Spain: 5.15% (+1bp)
France: 3.14% (+2bp)
Germany: 1.78% (-1bp)
UK: 1.96% (flat)
US: 1.86% (+1bp)

Germany achieved a near record low yield at an auction of €3.4bn in two year notes today. The interest rate Germany will pay is a mere 0.18%, just above the 0.13% level it paid last week, the lowest ever.

Meanwhile Edward Parker, a senior analyst at the ratings agency Fitch, suggested Italy’s rating could be cut by up to two notches from its current A+ level.

The IMF has said it is proposing to double its lending resources to $1tn to combat the ongoing debt crisis in Europe.

BS

« Go back to news channel

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE