– Angela Merkel on expanding the EFSF (paraphrased, via Alea)
Interesting to note that Spanish and Italian government bonds have drifted higher this week (and Belgium just won’t budge or back down).
Perhaps something to watch, given how investors seized upon contagion the last time the German chancellor staged a verbal intervention in the market.
Spanish bond investors say NEIN:
Italian bond investors say NEIN:
Belgian bond investors say NEIN:
The exception is Irish and Portuguese debt — but we think you could guess why that might be. We’re not so sure what can make the bigger bonds calm down, though.
France five-year CDS is back above 100bps. Belgium CDS is just over 200bps again as well, according to Markit data.
Of course, year-end trading is quiet indeed … a deathly calm.
Related links:
Fitch previews a precarious ESM – FT Alphaville
Rollover is all - FT Alphaville
A martingale over Europe – FT Alphaville