Billion Euros Of Different

Highlights - An acceleration in deposit withdrawals, combined with the prospect of an anti-austerity party winning the next election, has brought to the fore concerns about a potential Greek exit from the euro zone. - Our base case assumption is that under the most likely scenario, the Greek election will lead to a government that sticks to an EU/IMF program, even if the terms are renegotiated. - However, we do believe that Greece needs a further restructuring of its debt and we do think the country will ultimately exit the euro - we're just not convinced that Europe is ready for this to happen at the moment. - If an accident does occur and Greece does leave the euro in the near term, it would have global financial ramifications that could range from severe to catastrophic. ...

Amid the political havoc in Greece and tension over the fate of the debt-laden nation and the case for the first euro exit, the tension extended to hammer Italy and Spain as both nations auctioned bonds today to suffer rising borrowing costs. The debt market tension resurfaced once again in the past period and the ECB till now has been dormant. Both nations are already center stage and specially Spain which still fared worse between the two. Italy sold a total of 5.25 billion euros at the auction meeting the top of the set range of 3.50-5.25 billion euros. Italy auctioned different maturity bonds due in 2020, 2022 and 2025 which it does not issue at a regular basis and saw demand strong for the bonds as the total bids were nearly twice the allotted 1.75 billion. Italy sold 651 million ...

(Reuters) - Gold fell for a third day on Wednesday, touching a four-month low and all but wiping out its gains for the year as the escalation in the euro zone debt crisis prompted investors to favor dollars and German government bonds as safe-havens. Political disarray in Greece, a change in the French presidency and renewed concern about the resilience of the Spanish banking sector sent the euro to a 15-week low against the dollar and propelled German bond futures to record highs. Spot gold was down 1.2 percent on the day at $1,585.01 an ounce at 0940 GMT, having lost more than 3 percent so far this week in its largest weekly slide since mid-March. "It's not as though the escalation of the political risk in Europe is doing anything positive for gold prices at all and this is totally ...

(Reuters) - The euro zone economy worsened markedly last month and U.S. employers cut back on hiring, according to two reports on Friday that dampened hopes for gradual recovery on either side of the Atlantic. In Europe, the purchasing managers indexes (PMIs), which primarily cover services, suggested a recession across the continent's currency union could now extend to mid-year and be deeper than previously thought. The gloomy surveys clashed with the picture painted by European Central Bank President Mario Draghi, who on Thursday spoke of a gradual recovery taking place in the euro zone during the course of the year - although he did speak about risks. In the United States, a government report showed employers added a disappointing 115,000 workers to payrolls last month and, ...

After ending a volatile session, the euro returns once again to trade narrowly within a tight range ahead of the critical European confidence report, where eyes will be focused today on confidence data from the euro-area region for details whether markets returned to normalization or fears and debt concerns continued to affect the sentiment, especially in the debt market. Market projections suggest that the overall sentiment could have declined slightly in April; however, we cannot forget that manufacturing and services dropped sharply in April beyond expectations, the thing that might weigh significantly on the industrial and services confidence since both sectors contracted unexpectedly in the month. The industrial confidence is projected to improve slight yet to remain negative, where ...

The sentiment was mixed during the session yesterday, where after the unexpected resignation of the Dutch Cabinet markets remained pressured on expectations the nation will not be able to run a successful bond auction as the nation was set to sell bonds with different maturities; however, the nation was able to auction bonds near the maximum target while yields remained almost around those recorded in March the thing that eased pressures on the euro. However, Spain sold short-term bonds that mature in less than a year on rising borrowing cost, the thing that added tension that the nation might not be able to meet the targeted cuts nor to boost growth as investors still doubt the ability of the nation since it failed in 2011 to meet any of the targets set by the European Union. ...

(Reuters) - The Australian dollar hit a two-week trough on Tuesday after soft inflation data bolstered expectations of deep interest rate cuts by the Reserve Bank of Australia, while the euro was subdued ahead of a debt sale in the Netherlands. Australian consumer prices rose by less than expected last quarter while key measures of underlying inflation showed the smallest rise in more than a decade, paving the way for a cut next week and suggesting further cuts were possible. This saw the Aussie dive to $1.0247 - its lowest since April 11 - before it recovered to $1.0265, still 0.6 percent below the late New York levels. A sustained break below 1.0250 would open the door for a fall to the April low of 1.0226. "(A rate cut's) probably a done deal now. The CPI number's so low, it's hard ...

The European common currency reversed to the downside versus the low yielding U.S. dollar during the European session today after the Spanish and French bond auctions on fears the unsustainable yields might pull Spain into the debt-trap, following other indebted nations such as Greece, Ireland and Portugal which sought bailouts after borrowing costs kept on rising. Spain sold today a total of 2.54 billion euros of bonds maturing after two and ten years, slightly above the maximum target of 2.50 billion euro, recording yields above those recorded an auction earlier, while demand weakened as the future of Spain still uncertain. The treasury auctioned as well 1.42 billion euros of 10-year bonds, producing an average yield of 5.743%, up from the previous of 5.33% recorded on April 4. Bid-to- ...

(Reuters) - Spain will pay dearly for longer-term debt on Thursday when it auctions a 10-year bond for only the second time this year to markets spooked by fears it will miss deficit targets and fail to restart growth. The benchmark 10-year bond peeped above 6 percent on Monday for the first time since the end of November, sparking concern it could soon become unsustainable for the government to refinance itself, though pressure on the paper has since eased. The Treasury aims to raise up to 2.5 billion euros ($3.3 billion) between the auction of a bond maturing October 31, 2014, with a 3.3 percent coupon and the benchmark, which comes due January 31, 2022 and holds a 5.85 percent coupon. The relatively small auction - and the fact the Treasury has already raised 47 percent of its gross ...