France, the euro area bond yields soaring
debt crisis could spread to the core countries
At the latest auction of the Spanish and French bond yields soared, European stock markets fell across the board.
as of 22:18, the European Stoxx 600 index fell 0.92% (2.17 points) reported 234.87 points, Germany’s DAX index fell 0.84 percent (49.50 points) reported 5863.86 points, the French CAC down 0.89% ( 27.20 points) reported 3037.7 points, the UK FTSE 100 index fell 1.61% (88.47 points) reported 5420.55 points.
the same time, U.S. stock index futures fell before the plate, indicating that stocks opened down there the second consecutive day as investors worried about rising borrowing costs will further deepen the debt crisis.
newspaper roundup on November 17 evening news, the Spanish Ministry of Finance sold 35.6 billion euros ($ 4.8 billion) of the 10-year bonds, the average yield of nearly 7%, the highest since the euro District has set the highest level since, mainly due to market demand for government bonds decline.
the Spanish Ministry of Finance said the ministry Thursday to 6.975% of the average rate of return on sale of the scheduled January 2022 expiration of the 10-year government bonds, higher than similar bonds on the secondary market, 6.69% also much higher than the 10-year bonds sold last month, when 5.433%. Spain’s Ministry of Finance for the development of the national debt exchange offering the highest goal of 40 billion euros ($ 5.4 billion).
Bank of America Merrill Lynch in London, chief Europe economist Lawrence – Boone, said in a telephone interview: “Although it seems yields can still be maintained at sustainable levels, but Spain is no doubt facing the tension is growing, this is not necessarily because Spain itself, and more is due to the lack of an EU-wide solution for all. “
euro zone government bonds have all been sold
the bond sale transaction is completed, Spain has 10 year benchmark bond yield rose 6.69% from the previous to 6.708%, with comparable German yield spread between government bonds is 495 basis points higher than yesterday’s 460 basis points.
standard bond sale in Spain, France also auctioned $ 9.4 billion debt, rising interest rates. September 25, 2013 expiration of the 2-year Treasury rate from 1.31% in October rose to 1.85%, 5-year Treasury rate rose to 2.31% from last month’s 2.82%.
France Thursday, 10-year Treasury yields expanded 8 basis points to 3.79%, and German bond yields spreads over the same period exceeded 200 basis points, for the first time since the creation of the euro area.
Recently, in addition to German government bonds outside the euro area are almost all sold off, from the Netherlands to Finland and Austria, countries in the euro area bond yields are rising, suggesting that European Union officials have difficult to convince investors that they ability to prevent the sovereign debt crisis began in Greece and to ensure that the euro zone will continue to survive.
fears that the crisis will spread to the euro area core countries of France, while the ECB will have to buy more government debt in Europe. (Kim Ji)
global financial 20 people unemployment
Yesterday, ratings agency Fitch said in a statement, if the eurozone debt crisis spread, the U.S. banking industry will be a huge hit. Among them, including the newly named Global 29 systemically important banks Bank of America, Citigroup Bank, JP Morgan Chase and so will be subject to different levels of asset write-down risks, related write-downs assets may reach $ 50 billion.
Recently, Citigroup and Bank of America Bank of Paris, France came layoffs have affected more than 4400 people. By spreading the debt crisis and the European countries to tighten the regulation of this year, the country gold tide cuts off financial institutions, the year the world’s financial services sector is expected to nearly 20 million people unemployed, more than 174,000 in 2009 hit record.