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This article was published March 11, 2015 at 09:11.
The last change is the March 11, 2015 at 16:28.
Third session of trading today with the Qe of Mario Draghi. European shares rebound after weak attempt the beginning of the week. In particular, the lists have accelerated thanks to the words of the president of the ECB which, compared to the fears of the Greek crisis, has shown how the program of purchases of securities State will avoid contagion to the rest of the Eurozone. As well as “support the recovery in the euro area.” Wall Street, for its part, is opposed in the early afternoon.
Auction BoT and Shatz: falling yields
In general, however, on the fixed income side there is the crushing of the returns. In the morning the Treasury sold all 6.5 billion of the BoT to 1 year, with a rate of 0.079% to new record low. It is a performance that, taking into account the costs charged by banks, slipping into negative territory. According to the calculations of Assiom-Forex, reported by Thomson Financial, applying the highest bank charges, the net return of the annual BoT is negative and equal to a red 0.078%. A closer look is a first for the Italian government bonds. Today, in fact, the Italian investor who purchased the BoT annual auction will end ‘in a year with a lower amount due
But it is not just Italy: Germany has placed 4.09 billion securities to 2 years with a negative gross yield of 0.24% (-0.22% was in February).
Beyond the auction rate of thirty-year BTP, for its part, is andatoper the first time under the 2% threshold. The expiration of the ten-year travels according to Reuters terminal around 1.18%. The spread against the bund however is about 99 basis points. That is, do not go down that much. The reason? The rally of the same bund. The ten-year German, in fact, has become a performance virtually nonexistent to about 0.2%. The conjunction of the double drop (yields Bund and BTP) gives rise to differential dancing, precisely, around share 100.
A value, however, is greater than that of the differential Madrid. The issue ten Spanish, in fact, a yield around 1.23%. Which implies the spread higher than that of Rome.
From the peripheral countries of the Eurozone to France. Here the ‘Oat French 10-year rise. Tuesday its rate had inched up to 0.41%. Today it is around 0.42%. Again, this is a very low efficiency. All yield that, in general, are a result of shopping from the central banks of the Eurosystem.
Shopping from which, so far, is excluding Greece. The yield curve Hellenic remains a “conformation” risky. The rate of the deadline to 1 month is around 7.9%; one to two years is more than 14.8%, while the 10 years boasts a yield of 10.7%. In short, the market continues to show his skepticism with respect to the solution of the problem related to Athens. Although, today Greece has managed to sell all 1.3 billion of securities to 3 month period. The yield rose to 2.7%, or 20 basis points more than the last auction in February. However, demand was 1.3 times the offer. In addition, the yield on the secondary of the same maturity is much higher (5.4%).
The euro ‘flirts’ with parity against the dollar
But it is not just the public debt. Another area on which the loosening quantitivo produces its effects is that of currencies. Well, in the face of prospects of monetary tightening in the US, the dollar rises against the euro. The single currency, in fact, is now in contact with the parity towards the green ticket. Here, however, it may be noted the “strangeness” of many commentators and newspapers that speak of weak euro. Of course, the decline compared to the value of 1.20 beginning of the year (or early fall of 1.40) is large. However, the current share price, even net of the divergence of monetary policy between the Fed and the ECB, is more reflective of the real substance of the fundamentals of the two economic regions (US and Euroland). In fact, the euro was to be a little ‘time ago too strong. And now, therefore, can not be called weak.
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