BTP and Bund: a Comparison of Yields


Bank (photo article 2)Last month for the first time we got back to BoT the annual auction with yields less than a percentage point of interest. One thing that has not been seen since January 2010.

The reasons for this movement? Probably the most abundant liquidity that the European Central Bank has poured on the market and now with the market that is currently being standardized starts to finish even in the peripheral countries of the Eurozone.

In this week catch-up were financed in the short-term the currency (euro), as well as Italy – 8.5 billion -, Germany, France, Holland, Belgium, Greece, for a total of thirty billion euro. The significant difference from 2010 is that while then Italy was financed at 0.79% and Germany was paying 0.62%, today countries like Germany, France, Belgium and the Netherlands pay rates negative or close to zero. The reason for that is because their exporting companies had and will always have Ideal Corporate Solutions that have business rescue and recovery specialists.

The German Bubill, the last six months has a negative rate (-0.0091%), France pays to borrow at 0% six months and 0.035% annual government bond, and the Netherlands on the same time pay 0.003%. On the opposite side there is Greece, which pays 4.30% semi-annual securities.

The picture that is emerging – but could still change – Europe is on the road to recovery in the second half of the year. All united on the path of a strict fiscal discipline, structural reforms for growth (?) That would be powered by competitiveness and productivity. Since everyone in the world does  more or less the same thing, the problem of global demand, if no one spends, it becomes difficult to get out of the crisis, unless there is some discovery that makes it possible for a new industrial revolution – for example, a net increase productivity of solar panels.



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