The Greek government bonds dropped as some of the world’s biggest investors said the European Union’s €45 billion bailout plan for the debt stricken nation failed to make the securities attractive.
The declines pushed the yield on the two-year note up for a second day after Pacific Investment Management Co., which runs the world’s biggest bond fund, said it’s too early to buy Greek debt and BlackRock Inc. said EU states planning to participate in a bailout must show they can withstand a “backlash” from their citizens. Moreover, Portuguese bonds declined after the EU said the government needs to do more to tackle its budget deficit. “The aid package is a safety net, but it doesn’t change the fiscal situation in Greece,” said Luca Jellinek, a senior interest-rate strategist at ANZ Banking Group Ltd. in London. “Yields are not going to fall straight away. They need to show they are successfully cutting the deficit.”
Yesterday, the Eurostat released Europe’s Industrial Production for February. While forex trading markets had expected a slight increase of 0.2%, the report showed a sharp increase of 0.9% in industrial production between February and March – indicating that the EU’s recovery in the manufacturing sector remains firmly on track.
Later today, the ECB will publish its monthly bulletin. Released one week after the central bank’s rate interest decision, this report exposes the figures that the ECB used to make its rate decision – generally the report includes hints about future policies.
The declines pushed the yield on the two-year note up for a second day after Pacific Investment Management Co., which runs the world’s biggest bond fund, said it’s too early to buy Greek debt and BlackRock Inc. said EU states planning to participate in a bailout must show they can withstand a “backlash” from their citizens. Moreover, Portuguese bonds declined after the EU said the government needs to do more to tackle its budget deficit. “The aid package is a safety net, but it doesn’t change the fiscal situation in Greece,” said Luca Jellinek, a senior interest-rate strategist at ANZ Banking Group Ltd. in London. “Yields are not going to fall straight away. They need to show they are successfully cutting the deficit.”
Yesterday, the Eurostat released Europe’s Industrial Production for February. While forex trading markets had expected a slight increase of 0.2%, the report showed a sharp increase of 0.9% in industrial production between February and March – indicating that the EU’s recovery in the manufacturing sector remains firmly on track.
Later today, the ECB will publish its monthly bulletin. Released one week after the central bank’s rate interest decision, this report exposes the figures that the ECB used to make its rate decision – generally the report includes hints about future policies.
