Jan. 22, 2015, 9:38 AM
- It's an all-time low for Spain's 10-year note, which falls 14 basis points to 1.41% after the ECB launches a €60B per month asset purchase program. Italy's 10-year is down 12 bps to 1.56%.
- German 10-year Bund yields are down eight basis points at 1.40%, and the U.S. 10-year Treasury yield has undergone a major reversal, now lower by four basis points to 1.84% after rising as high as 1.94% after the ECB announcement. TLT goes green by 0.45% after being down more than 1.5%.
- ETFs: EU, BNDX, BWX, IGOV, BUNL, ITLY, ITLT, GGOV, BUNT
- Previously: ECB launches €60B per month QE (Jan. 22)
- Previously: Futures add to gains after ECB goes bigger than expected (Jan. 22)
Jan. 6, 2015, 7:16 AM
- The improbable (to most) rally in long-dated U.S. government paper continued overnight, with the 10-year yield dipping down all the way to 1.98%. It's bounced since, and currently stands at 2.00%, off three basis points on the session.
- It's a global rally, with bonds in the BAML Global Broad Market Sovereign Plus Index having an effective yield of just 1.28% - an all-time low (data is from 1996 on). A sampling: Japan 10-years 0.29%, German 10-years 0.47%, Spain 1.55%, U.K. 1.62%, Italy 1.77%, Australia 2.7%.
- TLT +0.5%, TBT -1%
- ETFs: TBT, TLT, TMV, TBF, EDV, TMF, TTT, JGBS, JGBD, BNDX, ZROZ, BWX, SBND, TLH, VGLT, DLBS, UBT, TLO, IGOV, BUNL, JGBL, ITLY, TENZ, LBND, ITLT, JGBT, GGOV, TYBS, DLBL, BUNT, JGBB
Feb. 13, 2014, 1:24 PM
- Enrico Letta is stepping down after the leader of his own party - Florence Mayor Matteo Renzi - pulled his support. Since being voted as leader of the center-left Democratic Party in December, Renzi has been critical of Letta because of the slow pace of economic reform.
- Letta was in power for less than 10 months, about par for post-WWII Italian governments.
- Official statement
- Italian stocks suffered early in the day as the resignation became likely, but closed down just 0.23%. EWI is higher on the session by 0.6%.
- Other ETFs of note: ITLY, ITLT
Oct. 2, 2013, 8:09 AM
- Berlusconi pulls a U-turn after putting his finger in the wind and says his party will vote to support the government of Enrico Letta.
- Italy's MIB Index had tumbled in late September (and bond yields had risen) as Berlusconi had threatened to pull his party out of the governing coalition. A vote planned for later this weak could strip him of his Senate seat following a conviction over tax fraud. Off about 1% earlier in the session, the market's up 1% now.
- EWI +0.9% premarket.
- Bond ETFs: ITLY, ITLT.
Oct. 1, 2013, 3:37 AM
- Facing rebellion in the ranks of his People of Freedom Party (PDL) over his withdrawal of support for the Italian ruling coalition, Silvio Berlusconi is prepared to back the government in a no-confidence motion tomorrow if Prime Minister Enrico Letta agrees to elections in November.
- However, it's not certain whether Letta will agree to the conditions.
- Italian markets are shrugging off the political crisis today, with the MIB +0.7% and Italian 10-year bond yields +1 bps to 4.58%.
- ETFs - Stocks: EWI. Bonds: ITLT, ITLY
Sep. 30, 2013, 3:30 AM
- Italian shares plunge 2.25% in early trading, while ten-year bond yields climb 8 bps to 4.65% following Silvio Berlusconi's decision over the weekend to withdraw his support for the ruling coalition and pull five ministers out of the cabinet.
- Prime Minister Enrico Letta is set to request a parliamentary vote of confidence for Wednesday as he looks to save his government and avert new elections. One possible hope is that disaffected members of Berlusconi's People of Liberty will back Letta.
- The crisis comes as the former PM faces a vote over whether he should be expelled from the Senate following his conviction for fraud.
- ETFs - Stocks: EWI. Bonds: ITLT, ITLY
Aug. 26, 2013, 5:05 AM
- Members of Silvio Berlusconi's center-right PDL party have again threatened to bring down the ruling coalition, of which the group is a member, if the Senate votes to expel the former prime minister following his conviction for tax fraud.
- A vote is due next month.
- The political uncertainty has hit Italian stocks (EWI), which are -1.8%. Ten-year bond yields (ITLY, ITLT) are +5 bps at 4.38%.
Jul. 4, 2013, 9:51 AM
European bond yields drop following Mario Draghi's press conference, with the falls in the periphery particularly sharp. Spanish 10-year yields -14 bps to 4.65%, Portugal -27 bps to 7.2%, Italy -11 bps to 4.41%, France -6 bps to 2.24% and Germany -5 bps to 1.62%. U.K. gilts -4 bps to 2.36% following the BOE's dovish statement earlier. Treasurys are +3 bps at 2.5%.| Jul. 4, 2013, 9:51 AM
Jun. 20, 2013, 3:52 AMThe mayhem caused by the Fed daring to suggest that it could soon start cutting off the liquidity extends to the European bond markets. Ten-year yields on French bonds +13 bps to 2.24, Germany +11 bps to 1.67%, Italy +18 bps to 4.43%, Portugal +15 bps to 6.22%, Spain +16 bps to 4.69%, U.K. +15 bps to 2.28%. It's worth noting that Japanese 10-year yields are up just 3 bps at 0.84%. | Jun. 20, 2013, 3:52 AM | 1 Comment
Apr. 23, 2013, 6:12 AM
Apr. 22, 2013, 5:21 AM
Milan shares are +2.2% and 10-year bond yields are -9 bps at 4.13% after Italian parliamentarians voted to re-elect 87-year-old Giorgio Napolitano as President. Speculation exists that Napolitano only agreed to take on the role again on the condition that a coalition government will at last be formed. However, a new election can't be ruled out following the resignation of the leader of the center-left Democratic Party after its candidates for president were rejected.| Apr. 22, 2013, 5:21 AM | 1 Comment
Mar. 18, 2013, 4:53 AM
As in Asia, shares in Europe slump on the proposed raid on bank deposits in Cyprus, while bond yields in Spain and Italy rise sharply. EU Stoxx 50 -1.7%, London -1%, Paris -1.3%, Frankfurt -1.3%, Milan -2.45%, Madrid -2.3%. Italy's 10-year yields +0.1 bps at 4.71%, Spain's +0.13 bps at 5.06%.| Mar. 18, 2013, 4:53 AM
Oct. 11, 2012, 4:12 AMYields on 10-year Spanish government bonds rise 9 bps to 5.89% following S&P's ratings downgrade, although it's not the biggest spike ever seen. Two-year yields are +10 bps to 3.37%. Ahead of an auction of up to €6B of Italian debt later, the country's 10-year yields are +4 bps to 5.15% and 2-year yields are +5 bps to 2.41%. | Oct. 11, 2012, 4:12 AM
Sep. 7, 2012, 4:05 AMNot only do EU stocks continue climbing over the ECB's bond-purchase scheme, but Spanish and Italian bond markets are dancing with delight as well. Spain 10-year yield -34 bps to 5.72%, 3-year -29 bps to 3.36%. Italy 10-year -14 bps to 5.05%, 3-year -12 bps to 2.7%. | Sep. 7, 2012, 4:05 AM | 1 Comment
Aug. 20, 2012, 6:01 AMSpeculation that the ECB might take action to cap the spreads between peripheral and German bond yields causes those of Spain to plummet. 10-year yields are -28 bps to 6.17%, while the 2-year is -39 bps to 3.38%. Italian 10-year yields are -7 bps to 5.72% and the 2-year is -9 bps to 2.96%. With German bond yields rising, the spreads are narrowing. | Aug. 20, 2012, 6:01 AM
Jul. 13, 2012, 4:19 AMNot joining in the EU stock rally is Italy, which is -0.6% following Moody's two-notch downgrade yesterday, while yields on 10-year Italian bonds are +13 bps at 6.04%. The ratings cut doesn't bode well for an Italian bond auction today, when the government hopes to sell €5.25B of paper with maturities of up to 11 years. Madrid shares are also down, -0.8%, while 10-year yields are +9 bps at 6.72%. | Jul. 13, 2012, 4:19 AM
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