| Второто действие на гръцката трагения. Italian Bonds Fall Sharply . LONDON—Italian government bonds buckled Monday, with five-year yields climbing to euro-era highs and the 10-year yield rising above the psychologically important 6% level as the post-European Union summit enthusiasm in risky assets fizzled out. The five-year Italian bond yield rose 0.09 percentage point to 5.80%, the highest level since the inception of the common currency. The 10-year yield increased by 0.08 percentage point to 6.06%, rising further from Friday when an Italian bond sale received feeble demand. "The lack of detail accompanying the summit's grand plans is sorely limiting the scope for a more permanent shoring up of sentiment," interest rate strategists at Rabobank said. The 6% mark on the 10-year note is crucial as selling in government bonds issued by other fiscally frail euro-zone countries exacerbated after breaching that level. The Italian government-bond market is the third largest in the world and given the size of its economy, the firepower of the rescue fund will be severely tested should Italian sovereign debt prices continue to fall and funding becomes unsustainable Натиснете тук |
| That leaves the central uncertainty at the heart of the euro crisis unresolved: Who will bear the ultimate losses for the euro crisis? That's worrying because if current economic conditions continue, further losses will have to be taken, not only in Greece but probably in Portugal and Ireland and possibly Spain and Italy. So long as this uncertainty persists, markets are unlikely to resume lending to governments and banks, worsening the recession. Of course, this may be all part of a German strategy to do the minimum necessary to keep kicking the can down the road while maintaining maximum pressure on troubled euro-zone countries to fix their economies. Certainly, there is unlikely ever to be another opportunity to force economic reform on countries such as Italy and Greece that have resisted it so long. Besides, Italy is simply too big to bail. But the can can only be kicked so far before the cost to German taxpayers of saving the euro may become too great, no matter how unthinkable the consequences. Натиснете тук |