Market Overview

European Comments Before the EU Summit


Italy debt costs keep rising.
Italian debt was bought for 2.96% yield, the previous debt issue was prices at 2.10% for six month bonds. Spain also issued debt early this week and paid 3.24% for six month bonds, which could go even higher for future issuances if there is a formal rescue request to shore Spanish banks.

Italian 10 year bonds are at a 10 year high are above 6%.

Merkel to talk with French President Hollande.
A day after commenting on the Eurobonds as a bad idea as it is “economically wrong and counterproductive” the fact is that other European members don't share her opinion, and it is telling that she is visiting one of her biggest rivals in newly appointed French President Francois Hollande.

Interesting fact:
This will be the 20th European Summit since December 2009 as per Belgian MEP Guy Verhofstadt

Pre Summit quote:

“I'm only looking to what's happening in the last meeting between the four leaders – of France, Italy, Spain, and Germany – meeting in Rome on Friday [22 June] where Hollande says: “Yeah, I don't want to give more sovereignty to Europe if there's no solidarity”, and Merkel saying: “I don't want to give more solidarity if there's no transfer of sovereignty”.
It's like two children! What do you normally do with such two children? You … say “OK, it's over now” with both of them.

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Posted-In: Forex


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