The attention is captured the step magnetizedThe negotiations will be launched on November 24My employer does not compensate me for thisEurope finds itself in a very tense situationA recognized degree is of course essentialIn three years the index had declined from 35It research this is the project the envyNegative the price of wines by the glass 7 clNew forms of payment credit card InternetBut the hole of air in operating margin which is 11Taking advantage of the correction of the stock market, the European obligations have experienced a slight improvement yesterday. The performance of the German titles in 10 years has relaxed 3 basis points, 3,214, and French bonds and maturity also conceded 3 points at 3,594. The trend was more pronounced on rates 2 years with a relaxation of 5 points to 1,344, on the hexagon and 3 points to 1,296 debt for the Germany. Long rates are further guided by the feeling of investors, which helps explain the underperformance of the German Bund in recent weeks: the rebound of the appetite for risk spurred less safe assets, causing the same time tighter risk premiums on the debt of the other States of the eurozone from the Germany.
The European Central Bank (ECB) also plays a role in the orientation of the obligations. April 2, the institution chaired by Jean-Claude Trichet has disappointed expectations by lowering interest rates by 25 points from base to 1.25, and postponing decisions on non-conventional policy such as the purchase of debt on the market. The rate to 10 years jumped nearly 17 points on the day of the announcement. The reaction of the short rate was naturally stronger: the performance of the German titles in 2 years is, for its part, stretched to 18 points.
Since then, the gap is widening between the two rates. The differential between the 10-year and 2 German years at currently approximately 185 points, close to the peak 197 points observed on February 6. The differential on the French rate stands at 222 points. The strong registered gap in recent months was 230 points early March.
Operators are convinced that the ECB will cut interest rates to 1 tomorrow, causing the rate to 2 years lower. A large majority believes that the Institute of issue did not go further for some time. "If the ECB notes that the rent of the money has reached its floor, tomorrow, the trend of a strong gap between short and long rates will subside", predicted Patrick Jacq, strategist at BNP Paribas. Operators are also less likely to consider that the Central Bank begins in the purchase of sovereign bonds in the wake of the Fed or the Bank of England. Such a device seems very complex to implement sixteen. In addition, several experts emphasized that the financing of the old Continent depended on 70 of banks and non-capital markets.
Finally, bond markets is dependent on the supply of paper. This week, 18 billion euros of emissions are planned, according to Dresdner and Commerzbank. The France, the Germany, the Spain and the Austria should throw the debt. "There is no rebates or coupon payments, therefore net emissions are equal to raw lifts, and this situation should not so much change in the coming weeks," noted strategists of the German institution. In other words, the market may indigestion. Even though, last week, the US bond market was rather well absorbed more than 100 billion dollars. This week, 71 billion are planned across the Atlantic.