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Eurozone Bond Yields Hit A New High Amid The Euro Crisis.

2011/11/17 9:39:00 14

Eurozone Bond Yields

On Tuesday (November 15th), the yield and CDS rate of the main members of the eurozone were "scrambling" for a record high during the European market period.

In Italy, Spain and Belgium, the cost of debt insurance for five years rose to a record high.


Data show that Italy's five year CDS rate rose by 29 basis points to 580 basis points during the day, while Spain's five year CDS rate rose 17 basis points to 464 basis points; Belgium's five year CDS rate rose by 15 basis points to 335 basis points.

French / German yields on 10 - year bonds widened by 8 basis points, hitting the highest 173 basis points since the advent of the euro.

The yields of Belgium / Germany 10 - year treasury bonds widened 6 basis points to 288 basis points, hitting the highest since the birth of the euro.

European market

After opening, the euro / US dollar continued to decline, to a minimum of 1.3511. At present, if there is a rebound, it will be held near 1.3540.


At the beginning of the European market, Italy announced the European Union's trade account in September, euro / dollar.

Shock

Go down.

The total value of Italy's 9 monthly trade account deficit is 1 billion 840 million euros, the former value deficit is 3 billion 200 million euros; in September, the EU trade account deficit was 8 million euros, and the former value deficit was 766 million euros.

Yields on Italy's treasury bonds continued to rise, the yield of 10 year Italy treasury bonds was 6.82%, up 18 basis points, and the yield of 5 - year Italy treasury bonds was 6.75%, up 19 basis points.


Citibank (Citi) said that the SNB will soon enter the market again to intervene in the Swiss Franc exchange rate.

The Swiss central bank successfully pulled the Swiss Franc exchange rate from record highs in September, but overall, the Swiss Franc remained at a record high.

Thomas Jordan, deputy governor of the Swiss central bank, said the central bank would intervene in the foreign exchange market again if necessary, but it would not take action because of political pressure.

If

European debt crisis

The Swiss central bank will take action if the situation puts more pressure on the Swiss economy.


Gaitame.com Research Institute Ltd.

Analysts Daisaku Ueno pointed out that it is hard for us to expect investors to actively buy dollars.

The US economy is not enough to make the FED change its current easing monetary policy.


technical analysis


EUR / USD: it is suggested that we should pay attention to the following points.


Supporting position: 1.3520, 1.3480, 1.3420 resistance level: 1.3580, 1.3620


Sterling / US dollar: we suggest that we should take a short look at the following points.


Supporting position: 1.5840, 1.5800 resistance: 1.5885, 1.5930


Prudent operation and strict stop loss of $3-5.


 
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