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Germany hits back at Moody's after the ratings agency gave the country a negative outlook,...

Germany hits back at Moody's after the ratings agency gave the country a negative outlook, pointing out that it has exceptionally low borrowing costs. "Germany will, through solid economic and financial policy, defend its 'safe haven' status," the finance ministry says. Yields on 10-year bonds are +6 bps to 1.24%.
Comments (2)
  • marilyn61
    , contributor
    Comments (173) | Send Message
     
    Moody’s say that Germany is at risk from the increased likelihood of a Greek exit from the Euro and the need to provide more support to Spain. Germany say's that a Greek exit from the Euro would be no big deal !!!
    24 Jul 2012, 06:51 AM Reply Like
  • 2MuchDebt
    , contributor
    Comments (215) | Send Message
     
    Bond yields gauge "relative" safety. Germany, compared to the rest of Western Europe, is much safer. However, there is certainly risk associated with a Greek exit and continued waste of taxpayers dollars for sovereign (or bank) "bailouts". This is also in an era of worldwide ZIRP and extraordinary monetary easing. So just because yields are low does not mean all is well.
    24 Jul 2012, 08:08 AM Reply Like
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