The European Union attracted the highest demand ever for a bond sale on Tuesday at over 233 billion euros ($275 billion), bankers involved in the deal said, as it kicked off fund raising for its SURE unemployment scheme.
Demand was nearly 14 times the 17 billion euros the EU raised from the issue, comprising 10 and 20-year social bonds, bankers said.
Read more at:
EU makes bond market history with record $275 bln demand for SURE issue - bankers | Reuters
Showing posts with label Bond Market. Show all posts
Showing posts with label Bond Market. Show all posts
10/20/20
4/26/13
EU Economy: Europe's Bonds Rally While Economies Continue to Slide - by Charles Forelle
The bond markets and the economies of Europe's struggling countries tell two very different stories this year: One is rallying; the other, sinking.
In July 2012, Italian 10-year bonds yielded more than 6%; this week they fell below 4%. Falling yields mean rising prices. The Italian economy, meanwhile, has been ugly. Gross domestic product in the fourth quarter of 2012 slid 2.8% from the same period in 2011, the sharpest quarterly fall since 2009. Italian unemployment was 11.6% in February, up from 10.6% in July. The tale is similar in Spain.
The bond-market rally has broad implications for the euro zone. At a basic level, access to financing is the measure of the crisis. Greece, Ireland, Portugal and Cyprus ultimately needed bailouts because they couldn't persuade investors to lend them money. Spain and Italy can avoid similar fates so long as investors are buying bonds.
Right now, demand seems robust: Wednesday, Italy sold €2.5 billion ($3.25 billion) of two-year zero-coupon bonds at the lowest yield it has received for the instrument since the introduction of the euro. Such bonds are sold at below face value and repaid in full upon maturity.
Read more: Europe's Bonds Rally While Economies Continue to Slide - WSJ.com
In July 2012, Italian 10-year bonds yielded more than 6%; this week they fell below 4%. Falling yields mean rising prices. The Italian economy, meanwhile, has been ugly. Gross domestic product in the fourth quarter of 2012 slid 2.8% from the same period in 2011, the sharpest quarterly fall since 2009. Italian unemployment was 11.6% in February, up from 10.6% in July. The tale is similar in Spain.
The bond-market rally has broad implications for the euro zone. At a basic level, access to financing is the measure of the crisis. Greece, Ireland, Portugal and Cyprus ultimately needed bailouts because they couldn't persuade investors to lend them money. Spain and Italy can avoid similar fates so long as investors are buying bonds.
Right now, demand seems robust: Wednesday, Italy sold €2.5 billion ($3.25 billion) of two-year zero-coupon bonds at the lowest yield it has received for the instrument since the introduction of the euro. Such bonds are sold at below face value and repaid in full upon maturity.
Read more: Europe's Bonds Rally While Economies Continue to Slide - WSJ.com
1/19/12
Confidence in eurozone improves despite downgrades
France and Spain on Thursday sailed through their first bond market tests since Standard & Poor's downgraded their credit ratings last week, a sign that politicians and central bankers have at least temporarily stemmed the spread of Europe's debt crisis.
Worries about the 17-nation eurozone have receded since the start of the year, with stocks rallying consistently and bond yields — the rate countries pay to borrow — sliding.
Analysts warn, however, that those gains may simply be riding an absence of bad news — a looming recession could hinder efforts to slash deficits while Greece depends on a deal with banks to avoid a disastrous default this spring.
For more: Confidence in eurozone improves despite downgrades - CBS News
Worries about the 17-nation eurozone have receded since the start of the year, with stocks rallying consistently and bond yields — the rate countries pay to borrow — sliding.
Analysts warn, however, that those gains may simply be riding an absence of bad news — a looming recession could hinder efforts to slash deficits while Greece depends on a deal with banks to avoid a disastrous default this spring.
For more: Confidence in eurozone improves despite downgrades - CBS News
7/20/11
Europe: Bond markets: Villains or saviours?
Chancellor Merkel is lowering expectations. The agenda has not yet been set. But the story of the past 18 months in Europe is that events have been driven not by politicians but markets. The markets drive and the politicians react.
When the 17 leaders of the countries that use the euro leave the Belgian capital they will all be watching and waiting for market reaction.
There is an oft-quoted story of a remark made by one of Bill Clinton's advisers, James Carville, also known as the Ragin' Cajun. He said that if there was reincarnation, he once "wanted to come back as the president or the Pope or a .400 baseball hitter. But now I want to come back as the bond market. You can intimidate everybody."
For more: BBC News - Bond markets: Villains or saviours?
When the 17 leaders of the countries that use the euro leave the Belgian capital they will all be watching and waiting for market reaction.
There is an oft-quoted story of a remark made by one of Bill Clinton's advisers, James Carville, also known as the Ragin' Cajun. He said that if there was reincarnation, he once "wanted to come back as the president or the Pope or a .400 baseball hitter. But now I want to come back as the bond market. You can intimidate everybody."
For more: BBC News - Bond markets: Villains or saviours?
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