Greece is still the motor of the world investment market mover this week.Today, the performance of European government bonds dropped off some of its assets so the yield goes up. The failure of coalition formation factors in Greece make market participants worried about the future of the area. Amid
a lack of economic agenda, the bond market is likely still focused on
political issues in Greece and several other countries are problematic.
As
long as there is no clarity on speculation Greece to expel from the
euro, then the interest in risky assets has not yet been recovered. Flower bond Italy 10-year perched on 5.64% and the yield of bonds of 5.84%, Spain were both up 4 basis points.Financial institutions Credit Suisse raised the percentage likelihood of Greece to expel eurozone from 5% to 15%. The latest polls showed as many as 70% of the residents still hoped Greece joined the euro. However the political transition factor could be the reason behind the Athenian resistance against European trimming program. If this is proven, then the European financial system could be shaken
Posted in: Bond Market focus on Greece