Tag Archives: italy

Where Are the PIGS Now, Minus the G?

Over the past five years, the more worrisome government-issued debt in Europe has made significant progress in managing the normal mechanism of higher-perceived risk equaling higher yields. The Wall Street Journal focused on Portugal’s debt in their article, “Decade of Easy Cash Turns Bond Market Upside Down”. Quantitative easing (QE) by the European Central Bank Read more […]

European Government Bond Markets Absorb a Lot of Market Info in the First Week of June

European bonds markets had a lot to take in last week.  For the most part, they all responded with a downward price reaction regardless of risk profile, with the exception of Greece.  The ECB left monetary policy unchanged.  Eurozone inflation for May climbed to 0.3%, indicating that QE is having the desired effect.  Greece chose Read more […]

Europe’s Short Rate Remains Unchanged

The European Central Bank left its key rate unchanged at a record low of 0.25%. There was speculation around whether the European Central Bank would cut rates again in response to the low level of inflation (0.7% in January). The central bank’s president, Mario Draghi, addressed the low inflation issue by saying that the measure Read more […]