Fri, Jun. 19, 9:48 AM
- The ECB today boosted the amount Greek banks can borrow under the emergency liquidity assistance funding program (ELA) by about €1B, but that's just one-third of what depositors pulled from the lenders this week.
- Up well over 1% earlier in the session, European stocks (NYSEARCA:FEZ) have cut those gains significantly and Germany (NYSEARCA:EWG) has moved into the red.
- Athens is higher by 2.3%, but from very beaten-up levels. GREK +2.7%, NBG +0.9%
- Also higher earlier in the session, the 10-year U.S. Treasury yield is now off six basis points to 2.29%. TLT +0.9%, TBT -1.8%
Tue, Jun. 16, 9:24 AM
Mon, Jun. 15, 9:14 AM
Mon, Jun. 15, 7:00 AM
- Weekend talks aimed at resolving the Greek mess reportedly lasted just shy of an hour before ending.
- The Athens Stock Exchange General Index is lower by 4.4, with the yield on the country's 10-year paper up 69 basis points to 12.19%. The yield on the two-year note is up 308 basis points to 27.93%. National Bank of Greece (NYSE:NBG) is off 14.5% premarket.
- ETF: GREK
Fri, Jun. 12, 9:57 AM
- The bond rout of the past few weeks has been notable for its correlation. The bond markets of putative solid credits like Germany and the U.S. were hit as hard or even harder than those of countries like Spain and Italy.
- Potentially worrisome in today's action: Yields are flat to lower in Germany and the U.S. while moving sharply higher in the peripheral countries.
- The 10-year U.S. Treasury yield is down 1 bp to 2.37% and the 10-year German Bund yield is lower by 3 bps to 0.86%. Meanwhile, the Spanish 10-year yield is up 18 bps to 2.31%, and Italy up 12 bps to 2.26%.
- This is happening as another Greek default and then possible EU exit got more likely with the IMF technical team's return to D.C. yesterday, and investors may not want to be holding the paper of the next countries in line should anything adverse happen over the weekend.
- Spain's IBEX 35 (NYSEARCA:EWP) is lower by 1.3%, and Italy's FTSE MIB (NYSEARCA:EWI) by 1.5%. Elsewhere in Europe, Germany (NYSEARCA:EWG) is down 1.5% and France (NYSEARCA:EWQ) is down 1.7%. FEZ -2.2%, GREK -4.1%, NBG -7%
- ETFs: VGK, FEZ, HEDJ, IEV, EU, EPV, EZU, FEU, EEA, EURL, FEP, UPV, DBEU, BUNL, ADRU, HEZU, FEEU, IEUR, BUNT, GGOV, FIEU, DBEZ, FEUZ, SBEU
Fri, Jun. 12, 9:11 AM
Thu, Jun. 11, 10:44 AM
- "We are well away from an agreement," says IMF spokesman Gerry Rice, as the agency's technical team returns to D.C. from Brussels. "There are major differences between us in most key areas and there has been no progress in narrowing these differences."
- The main obstacles, says Rice, are pension reform, tax policy, and financing. "On financing, what we have said consistently is that is has to add up."
- Nicely higher earlier, the Greek ETF (GREK -0.1) turns red, as does National Bank of Greece (NBG -0.8%).
- Previously: S&P further downgrades Greece (June 10)
Wed, Jun. 10, 4:44 PM
- The Greek government will likely default on its debt within twelve months, says S&P, lowering the country's credit rating to CCC from CCC+. The outlook remains negative.
- "Greece delaying its payment to the International Monetary Fund last Friday, June 5, appears to demonstrate that the Greek government is prioritizing pension and other domestic spending over its scheduled debt service obligations."
- GREK, NBG
Thu, Jun. 4, 4:42 PM
- The news hit after Athens stock exchange had closed for the session, but GREK closed down 5.9% in a preview of what may be ahead on Friday.
- It's the first time a developed country has ever missed a payment to the IMF, writes Ambrose Evans-Pritchard, noting the Greek government is invoking an obscure mechanism to bundle all debts due in June and pay them at the end of the month.
- A caught-off guard IMF (hours earlier, Christine Lagarde was confident the payment would be made on Friday) confirms it's been notified by the Greek government that the entire $1.6B due this month will be paid on June 30.
- The skipped payment is the clearest sign yet of an escalating crisis, writes AEP, as Syriza refuses to buckle and high statesmanship from Europe is so far absent. Syriza has the money on hand to make the payment, but says it won't burn any more of the country's dwindling cash until a credible bailout offer is on the table.
- NBG -8.9%
Wed, May 27, 10:35 AM
- Athens (GREK, NBG) is leading the way with a 3.6% gain. Italy (NYSEARCA:EWI) is higher by 1.9%, France (NYSEARCA:EWQ) by 1.7%, Spain (NYSEARCA:EWP) by 1.6%, Germany (NYSEARCA:EWG) by 1.1%. The Stoxx 50 (NYSEARCA:FEZ) is ahead by 1.2%.
- Source: CNBC
- ETFs: VGK, FEZ, HEDJ, IEV, EPV, EZU, FEU, EEA, EURL, FEP, UPV, DBEU, ADRU, HEZU, FEEU, IEUR, FIEU, DBEZ, FEUZ, SBEU
Fri, May 22, 2:43 PM
- German Finance Minister Wolfgang Schaeuble suggested the possibility of parallel currencies at a recent private meeting, reports Bloomberg, though he stopped short of endorsing the idea.
- The Peterson Institutes's Jacob Kirkegaard suggests Germany is "ready to take this brinkmanship very far," with Schaeuble in the role of "attack dog."
- SocGen's Sebastian Galy notes other non-EU countries incorporate the euro into their systems. Turkey is one, as is Montenegro - the example Schaeuble used in his meeting.
- GREK -1.8%, NBG -3.2%
Mon, May 11, 9:22 AM
Thu, May 7, 9:20 AM
Wed, May 6, 9:11 AM
Mon, Apr. 27, 9:18 AM
Fri, Apr. 24, 9:17 AM
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