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This article was published March 12, 2015 at 09:13.
The last change is the March 12, 2015 at 11:22.
morning shortly move to Milan stock and for European stocks after the new breakout on the upside of the day yesterday. The FTSE MIB is moving on the threshold of 22,823 points. In anticipation of the Treasury auctions of BTP at 3, 7 and 30 years, new low since the euro for the yield on ten-year BTP. Shortly after the start of session, the spred between Italian bonds and German Bunds started to decline and was brought under 90 basis points, to a height of 84, the lowest since 2006. At the same time, the ten-year benchmark Italian was reduced to 1.09%. Close the spread between Bonos and Bund stood at 88 basis points with a yield of 1.07% ten-year Spanish stable (Bund yields Eurozone).
The euro traded at $ 1.0594, after hitting a new low for 12 years at $ 1.0494, while continuing the quantitative easing of the ECB, Mario Draghi said yesterday that “works” and protects the euro area from the contagion of the Greek crisis. The European currency changed hands at 128.40 maximum for almost two years.
While Wall Street yesterday closed down with investors nervous about the possible moves of the Federal Reserve. The fact that a rate hike could happen soon, maybe already in June, has become a dominant theme in the markets although some people believe that the dollar rally – fueled by the decline of the euro, a result of the plan of monetary easing European Central Bank – will lead the Fed to stall. The Fed-funds futures show a probability of close next July to 41% against 37% earlier seen on March 5, before the spread of the solid American employment report in February. The focus is already on the next Fed meeting March 17 and 18, could be abandoned when the word “patient” refers to rates.
Appointments of the day
You go to new lows in the performance of BTP auctions scheduled for today, the first since the departure of the “Qe” of the ECB, in Following the sharp rise recorded from all over the European bond. At the close of yesterday’s session the triennial January 2018 traded at 0.22%, the seven years in April 2022 to 0.81% and the thirty-year in September 2046 (prior to the reopening after the union of mid-January) to 2.04%: all well below the minimum levels recorded in recent placements. The offer on the three titles is between 5.75 and 7.25 billion. In the afternoon, then reopen the BoT to 12 months at auction yesterday, with additional supply of 650 million.
Not only Italy today in the primary market for government securities. In peripheral segment also affect of Spain and Irlanda.Madrid offers up to 5 billion maturities in 2020, 2022 and 2025, while Dublin will be the test of thirty years, with an offer from a billion on deadline closing in 2045. Yesterday the spread Italian / Spain remained slightly in favor of cartaiberica: 1.13% return on Italian December 2024 against 1.10% in October 2024 Spanish. But the gap is reversed when looking at the new ten-year of the two countries (not yet ‘roll-formed’ on Tradeweb): 1.15% for June 2025 Italian and 1.16% for the April 2025 Spanish (at auction today).
There will now signs of relief on the economic front, from data on industrial production in the euro zone, which comes after the publication of the numbers for the individual economies of the region. On January expectations are for an increase of 0.2% after economic data plate of December. Among the data coming from the US in the afternoon are reported retail sales (+ 0.3% estimated one-on-month in February after + 0.8% in January) and the weekly jobless claims (305,000 against expectations 320,000 the previous week).
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