It was a tough test for the highly indebted euro countries Italy and Spain: the first time this year, she had to get new money in the capital markets. Both auctions ran smoothly. Have evaluated this as a good signal in the European debt crisis.
Spain gathers in more than planned
Spain came to the money easily and much cheaper than last. At an auction of three bonds of the Spanish state gathered twice as much capital as one targeted. Yields declined significantly.
With three medium-term government bonds took Spain a total of almost ten billion euros. Was targeted had half the sum. The bonds run for three, four and five years. For the three-year bond yield fell sharply from the 5.187 percent in December to 3.384 percent. Also, the yields of the other two titles were in decline due 2015 and 2016. They were at 3.748 or 3.912 percent.
For Italy, the interest rates tumble
Italy had to pay only half as high as interest rates have to last. At one-year securities, the yield was 2.735 percent - to 5.95 percent in December. At three-month interest rate securities fell to 1.644 percent, its lowest value since half a year. Collected a total of one-strapped state with the two auctions twelve billion €. The demand exceeded the supply volume is 1.5 - and 1.9-fold. The markets reacted positively: Yields on ten-year securities fell to 6.62 percent from Italy.
According to observers, especially the cheap money helped by the European Central Bank: In December, the ECB had issued three-year loans of almost 500 billion euros at a rate of one percent. This flood of money should be Europe's economy avert a credit crunch - and also, at least, say some economists - indirectly serve the public finance. Because of the low-interest loans from the ECB would enable banks to higher-yielding government bonds of euro-problem children to buy and reap a respectable profit. The loan program will help in this way in the markets under pressure of crisis countries. However, the central bank denies any such intentions.
Spain gathers in more than planned
Spain came to the money easily and much cheaper than last. At an auction of three bonds of the Spanish state gathered twice as much capital as one targeted. Yields declined significantly.
With three medium-term government bonds took Spain a total of almost ten billion euros. Was targeted had half the sum. The bonds run for three, four and five years. For the three-year bond yield fell sharply from the 5.187 percent in December to 3.384 percent. Also, the yields of the other two titles were in decline due 2015 and 2016. They were at 3.748 or 3.912 percent.
For Italy, the interest rates tumble
linkshare
Italy had to pay only half as high as interest rates have to last. At one-year securities, the yield was 2.735 percent - to 5.95 percent in December. At three-month interest rate securities fell to 1.644 percent, its lowest value since half a year. Collected a total of one-strapped state with the two auctions twelve billion €. The demand exceeded the supply volume is 1.5 - and 1.9-fold. The markets reacted positively: Yields on ten-year securities fell to 6.62 percent from Italy.
According to observers, especially the cheap money helped by the European Central Bank: In December, the ECB had issued three-year loans of almost 500 billion euros at a rate of one percent. This flood of money should be Europe's economy avert a credit crunch - and also, at least, say some economists - indirectly serve the public finance. Because of the low-interest loans from the ECB would enable banks to higher-yielding government bonds of euro-problem children to buy and reap a respectable profit. The loan program will help in this way in the markets under pressure of crisis countries. However, the central bank denies any such intentions.
No comments:
Post a Comment