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E U Debt Crisis Deepens As Yield Spreads Widen

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European Yield Spreads Widen on Concern Region's Debt Crisis Is Deepening
By Paul Dobson - Jun 25, 2010
Belgian, Italian and French 10-year bonds declined, sending their yield differences with benchmark German bunds wider, on concern the region’s debt crisis is deepening as the economic recovery sputters.
The bonds also fell amid speculation banks are selling some government debt they bought during the year-long emergency refinancing program from the European Central Bank, which expires on July 1. Germany’s 10-year bond yield headed for a weekly decline amid signs the global economy is slowing after data released two days ago showed growth in Europe’s services and manufacturing industries slowed in June. A report due June 29 will show confidence in the economic outlook in the 16 euro nations fell this month, according to a Bloomberg survey.
“This is a supply shock” as banks consider dumping their holdings to repay the ECB, said Kornelius Purps, a fixed-income strategist at UniCredit SpA in Munich.
“Banks are checking out the market. I anticipate this will intensify next week.

I agree with the sentiment that next week will see some shocks as reality sets back in. The optimism being felt in our property market will soon end as the shock waves from Europe begin hitting us.

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Doesn't it get deeper every weekend while the markets are shut?

And anyway isn't this inevitable until expenditure is cut significantly and income is enhanced significantly and since governments have announced this is happening, which means it obviously isn't so inevitably .....

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I wonder what they are planning next?

Cameron plans to kill Thatcher (about time too) and so the UK will be preoccupied with the funeral and so on. At the moment the World Cup is keeping people's minds off it. After that there is the Olympics.

Not sure what diversion we can have here in France maybe a constitutional crisis over the Burka ban.

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  • 401 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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