Italian 5-year borrowing costs are at unsustainable level

Note: This section contains information in English only.
Source: Dukascopy Bank
© Dukascopy Bank
"The cost of funding will become a crucial factor in the first quarter of 2012, when Italy has to issue 62.5 billion euros of bonds"
- Michael Leister, rate strategist at WestLB

Italy's five-year borrowing costs rose to record in a bond auction on Wednesday, adding pressure on Italian government to take decisive action against the crisis after last week's summit failed to restore investor confidence. Five-year debt was trading 6.81% at the end of the trading session.

"Uncertainties on the future of the debt crisis remain high and the market seems to be mainly driven by flight-to-quality this morning," said Annalisa Piazza, a market economist at Newedge Strategy.

"The cost of funding will become a crucial factor in the first quarter of 2012, when Italy has to issue 62.5 billion euros of bonds," said Michael Leister, rate strategist at WestLB. "For now however, the market is happy with supply being digested."
Back to articles

Actual Topics

Thu, 15 Dec 2011 08:22:28 GMT

U.S. import prices rose in November

U.S. month on month import prices rose at a moderate pace in November for the first time in four months, indicating inflation will remain contained. Prices of imported goods rose 0.7 percent after falling 0.5 percent in October, said the Bureau of Labor Statistics on Wednesday.

Wed, 14 Dec 2011 08:31:16 GMT

Japanese stocks closed lower on Tuesday

Japanese stocks declined on Tuesday after rating companies said last week's summit did little to resolve the debt crisis. The Nikkei 225 shed 1.17%, or 101.01 points, to 8,552.81, while the broader Topix lost 0.80%, or 5.98, to 740.71.

Subscribe to "Fundamental Analysis" feed

Subscribe
Pre viac informácií o Dukascopy Bank CFD / Forex obchodných platformách a ostatných záležitostiach
nás prosím kontaktujte alebo požiadajte o hovor od nás.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
Pre viac informácií o Dukascopy Bank CFD / Forex obchodných platformách a ostatných záležitostiach
nás prosím kontaktujte alebo požiadajte o hovor od nás.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.