debt costs rise in european nations
Last Updated : GMT 14:18:14
Arab Today, arab today
Arab Today, arab today

Debt costs rise in European nations

Arab Today, arab today

Arab Today, arab today Debt costs rise in European nations

Madrid - Arabstoday

Spain, Greece and Italy faced higher borrowing costs at debt auctions Tuesday after Standard & Poor\'s downgraded Greece and said it is \"increasingly likely\" that the nation will default. Spain sold ¤5.4 billion (Dh28.4 billion) of 12 and 18 month Treasury bills, just below the maximum target of ¤5.5 billion, and its 12-month borrowing costs rose to 2.695 per cent from 2.546 per cent in May. Greece\'s borrowing costs also rose as it sold 26-week Treasury bills, mostly to domestic buyers, and Italy auctioned ¤3.5 billion of five-year bonds at 3.9 per cent, up from 3.77 per cent last month. The gap between Greek and German borrowing costs surged to the widest since the start of the single currency yesterday after S&P slashed Greece\'s rating to the lowest in the world and said it was likely to become the first euro nation to default. Euro region finance ministers hold an emergency meeting in Brussels today to hammer out a second Greek rescue ahead of a summit of leaders on June 23-24. \"Anybody who believes that there\'s going to be a positive twist at the council with respect to Greece should also bet on a relief rally in the other peripherals,\" said Ioannis Sokos, a fixed-income strategist at BNP Paribas in London. \"The current yield pickup looks more tempting than it was a couple of months ago for Spain and Italy.\" The yield on Spain\'s 10-year bonds widened to 5.5 per cent from 5.492 per cent yesterday. It was at 4.738 per cent a year ago. Italy\'s 10-year bond yields 4.778 per cent. The Greek 10-year yield also widened and the spread between it and German bunds widened to 1,444 basis points. S&P\'s downgrade of Greece to CCC from B reflects \"our view that there is a significantly higher likelihood of one or more defaults,\" the rating company said. \"Risks for the implementation of Greece\'s European Union/International Monetary Fund borrowing programme are rising, given Greece\'s increased financing needs and ongoing internal political disagreements surrounding the policy conditions required.\" While the European Central Bank has said it could accept a plan in which creditors voluntarily agree to buy Greek bonds to replace maturing debt, policy makers have warned against a German proposal that maturities on Greek debt be extended for seven years, an outcome that rating companies said would be considered a default. Greece\'s Finance Ministry said S&P\'s decision \"ignores\" the \"intense consultations\" to resolve the nation\'s crisis between officials at the European Commission, ECB and IMF. At the Greek auction of 26-week treasury bills today, the average yield was 4.96 per cent and demand was 2.58 times the amount sold. At a sale of debt of the same maturity last month, the yield was 8 basis points lower and the bid-to-cover ratio was 3.58 times. Demand for Spain\'s 12-month bills was 2.85 times the amount sold yesterday, compared with 2.5 at last month\'s auction. It also sold 18-month debt, which had a bid-to-cover ratio of 3.91 times, compared with 4.12. \"Demand was healthy, but Spain had to pay a high price to sell almost all the amount announced, a reflection of the current tensions in the peripheral universe,\" Chiara Cremonesi, a fixed-income strategist at Unicredit Bank AG, said. Spain\'s Socialist government is trying to shield the euro region\'s fourth-largest economy from the sovereign-debt crisis, even as its authority is being undermined by the approach of a general election. In Italy, Prime Minister Silvio Berlusconi is also under pressure after he suffered his second electoral repudiation in two weeks as Italians voted to overturn legislation he sponsored, weakening his grip on power and increasing the chance of early elections. From / Gulf News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

debt costs rise in european nations debt costs rise in european nations

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

debt costs rise in european nations debt costs rise in european nations

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday