Dexia talk hit Belgian debt
LONDON, Nov 23 (Reuters) The yield premium of Belgian 10 year government 2018 canada goose outlet bonds over German Bunds hit euro era highs on Wednesday after a blow to prospects of forming a government left the country vulnerable to a canada goose outlet toronto factory fast spreading debt crisis.
The highly indebted country, which has been without a government for 18 months, suffered a further blow on Tuesday when its lead negotiator in forming an administration resigned.
Prospects of further political deadlock along with renewed talk about a bailout deal reached between Belgium and France on jointly owned bank Dexia brought Belgium into focus.
Reports the two countries were seeking fresh talks on the deal raised concerns that their Canada Goose Coats On Sale fiscal burden will get heavier and that France topparka may lose its triple A rating.
Belgian 10 year government bond yields rose 10 basis points on canadian goose jacket the day to 5.19 percent, pushing canada goose replica the spread over German benchmarks to a euro era high of 330 canada goose store bps. The equivalent French spread was 16 bps wider at 179 bps.
has been the funny one. it was supposed to be the next weakest after Spain. Because euro zone problems are bigger than Belgium no one worried about it but with the banking collapse and now the issues over that, people are taking Belgium seriously, Canada Goose Outlet Rabobank rate strategist Lyn Graham Taylor said.
the negative news continues you can see a gradual yield widening (towards Italian and Spanish levels) over the next three or four weeks.
Belgium is scheduled to issue bonds with maturities between seven and 30 years on Monday, but the sales are pre financing for 2012 as it has already met cheap Canada Goose Jackets its 2011 funding target.
will now be tough to get the Belgian 10 year yield back below this 5 percent level given the current tough backdrop in both Belgium politics and the. crisis, ING head of investment grade debt strategy, Padhraic buy canada goose jacket cheap Garvey, said.
Italian 10 year canada goose outlet store locations yields rose 13 canada goose coats on sale bps to 7.01 percent, cheap Canada Goose while Spanish 10 year yields rose 5 bps to 6.89 percent.
SAFE HAVEN FATIGUE
Bund futures initially rose Canada Goose Parka but canada goose coats reversed gains after trader said the European Central Bank was buying short dated Italian and Spanish debt. The canada goose December contract was last down two tick canada goose deals at 137.23.
Germany plans to issue up to 6 billion euros canada goose clearance sale of new 10 year Bunds later in Canada Goose sale the day. Low yields have seen recent auctions attract less demand than the amount on offer. If the Bundesbank retains a large portion of the sale, this could indicate canada goose black friday sale diminishing potential for Bund yields to hit new lows.
for the Bundesbank takedown to approach 1 billion (euros), Canada Goose online but anything more than this should be viewed as a point of weakness in the auction, Garvey said.
is suffering a bit from almost a safe haven fatigue, Rabobank Graham Taylor said.
little buy canada goose jacket bit is Canada Goose Online people switching out of Europe maybe, the other bit is that canada goose clearance yields are so low that you could argue that that if you think the ultimate solution is going to be a fiscal union you Canada Goose Jackets are almost better off going long Italy.