Italy somehow managed to sell EUR 4bn in 5-year bonds at a 5.6% yield amidst renewed concerns that Greece is boing bankrupt any time. Despite that Italy has already covered for about 70% of its 2011 financing needs it still needs to issue over 60bn in the remainder of 2011 to cover its budget deficit it meed bond redemptions.
In the meanwhile Italian officials are in talks with Chinese counterparts about potential investments in Italian bonds and strategic companies
The market is not happy. 10-year yields rising 17bps at the moment to 5.7%
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