And then seventeen years I work in the citySince 2000 they tend to drop to alarm Guy RibaThe dollar system gives US a huge advantageMoreover their number reduced as shrinkingOn 270 luxury in the world 130 brands are FrenchExports to China and the India are reduced confirms a familiar of the French business communityFor cause the cindynique thinking is emerging in FranceThe tax valuation would be observed in 2008Let's start with that of the European UnionState bond market is quarterly between an aversion to the very high risk and concerns about an explosion of sovereign debt.
The relapse of the stock markets the DJ Stoxx 600 index hit yesterday lowest in 12 years after positive in Europe, and the record for the index of perception of risk on the credit, the Itraxx, which jumped to 1.138 points, illustrated the sentiment of investors: after the recent announcements of support for the financial sector, the fears persist and benefit the most secure assets. But Citigroup and AIG's relief by the US authorities also feared a flight of financing needs likely to weigh on government bonds.
The US deficit is estimated at 1.750 billion this year. According to an officer of Pimco, one of the major fund managers bond in the world, cited by Bloomberg, the country could issue about 2,500 billion of debt in the coming twelve months. So serious is the risk of indigestion. Moreover, since early 2009, the market decline. The performance of the American loan to 10 years, evolving in the opposite direction of bond prices, rose from 2.2 to 2.9. Yesterday, at the height of the meeting, he is tended by 10 points, 2.97.
Meeting of the ECB tomorrow
If the activity of the primary market is relatively calm this week, it could reach $ 60 billion in the United States next week on Dresdner. The amounts that the country is considering to lift via titles in 3 years, 10 years and 30 years will be announced by Thursday. A record of 94 billion was issued during the last week of February.
Many strategists believe nevertheless that, if the 10-year bond yields climbed above 3 and moved to these levels, the authorities could finally implement what they have mentioned on several occasions since late 2008, namely the purchase of securities. "The purchase of bonds by the Fed seems to be a still plausible option, says Peter Müller in Dresdner." While the gap continued to widen between the short and long rates, it should now tighten, even if the Fed does not act. "The strategist considers that rate policy zero led by the United States can, alone, allow a relaxation in long rates in the wake of the short-term loans.
Through monetary policies conducted in recent months, the 2-year bonds resisted better since January and part of the Atlantic. The prospect of new cuts rates, particularly on the part of the European Central Bank (ECB) and the Bank of England (BoE) this week, supports the short rate markets. Yesterday, while the index of the London Stock Exchange won 1.81, the UK Gilt yields it is relaxed by 9 points to 1,248. An issue of securities due 2011 for 3.75 billion has yet occurred and it met a great success. "A 2.86, the coverage ratio is the highest that we have seen since 2004, note Morgan Stanley. "The rate should continue to decline while the quantitative easing measures promise to start soon," added the experts from the Bank. Beyond the interest rate cuts to 1.50 in the euro area and by 0.5 to United Kingdom tomorrow, investors are speculating on the establishment of non-conventional measures.
