frequently seen in the media, "European debt crisis" may be long people have read fatigue ", but investors concerned about market trends must not ignore the development trend of the crisis. European countries not only did not recover from the crisis lasted for many days, the bad signs of deeper and deeper. Greece of debt restructuring rumors, climbed to a record high national debt credit default swaps (CDS). Last week, Ireland, rating agency Moody's lowered the sovereign credit rating, on the 18th of the country's few large banks are also downgrade. Portugal is waiting for the final rescue plan in the EU.
chaos is hard to change the central bank to exit the road
down debt rumors, Greek ten-year Treasury yields last week rose to more than 13 percent, the biggest gain in 13 years. Greek CDS prices of government bonds last week soared (blog) rose to a record 1147 points, which indicates that investors expect the Greek government bonds the next five-year probability of default greatly increased. Portugal two years, five and ten-year Treasury yields last week have risen to record levels.
In addition, Moody's announced last week that Ireland's sovereign credit rating lowered two steps to the lowest investment grade. Standard & Poor's earlier this month the bond credit rating cut by a file to BBB +, outlook as stable. On the 18th, Moody's announced down the Allied Irish Bank, Bank of Ireland, EBS Building Society, Irish Life Bank and three other financial institutions, long-term deposit ratings.
Greek government on the 15th announced a deficit reduction plan, the country will further cut the budget deficit of 26 billion euros in the next five years, and said that the holdings of shares in the key state-owned enterprises. Nevertheless, Greece in the 18th five-year Treasury CDS continued to climb and rose by 84 basis points to 1220 basis points, a record level. CDS prices climb, rising expectations means investors bet on Greek debt default.
down debt rumors fueled breach of the expected
In addition to Greece, the euro area a few other debt problem country debt situation "does not appear to alleviate. European Commission, European Central Bank and the IMF on behalf of Local 18 gathered in Lisbon, Portugal, and discuss the terms of the Pu assistance matters. This is the third rescue operation launched in the euro area within a year after Greece and Ireland. The foreign media is expected, the scale of aid is expected to reach 80 billion euros.
earlier this month, the European Central Bank in the region to benchmark interest rates from 1.0% to 1.25% rate hike for the first time since July 2008. Market expectations that the ECB will raise interest rates before the end of the year twice. This gratifying gains for the euro, but because the European countries' debt situation did not improve, the euro really feel the power of the "late spring".
despite a period of time, the euro by the ECB rate hike expectations, driven by the way, but now investors once again divert attention to the debt crisis, the euro fell across the board in the 18th. 18 19 GMT, the euro-dollar exchange rate reported of $ 1.4294, down 0.91%; the euro against the yen at 118.34 yen, down 1.25 percent for the month low world pie network information .
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ECB imply that the tightening pace will not be disrupted, but the dim positive or give way and a series of bad, the euro has felt the power of the "late spring". 18 World Pipe network informed, the investors sell the euro, the euro against the yen intraday fell this month to the lowest point.
Since last week, rumors about the Greek debt to be restructured and will be prevalent. Greek media reported that on the 18th, Greece earlier this month, the European Union and International Monetary Fund (IMF) expressed the hope that the restructuring of debt, or will be in June this year to discuss the issue. However, the finance ministers of Greece and the top echelon of the European Union, the IMF members are denied this rumor.