Mecklai Graph: Will Portuguese yields soar higher?
Published on Wed, Feb 01, 2012 at 14:17 | Source : Moneycontrol.com
Updated at Wed, Feb 01, 2012 at 15:35
Like this story, share it with millions of investors on M3
0
Like this story, share it with millions of investors on M3
Mecklai Graph: Will Portuguese yields soar higher?
Mecklai graph of the day - Portuguese government is set to sell 105-day and 168-day bills later during the EU session today. Recently, there have been concerns that the nation will need more money from international lenders in order to avoid default.
Mecklai graph of the day - Will Portuguese Yields Soar Higher?
Portuguese government is set to sell 105-day and 168-day bills later during the EU session today. Recently, there have been concerns that the nation will need more money from international lenders in order to avoid default. Portugal, which is in a recession and has been lowered to junk grade by ratings agencies, has recently seen a beating on its debt with the yields sky-rocketing amid rising concerns that it could follow in Greece's footsteps in seeking restructuring.
The market response it gets today from the sale of bills will determine further directions in bond yields. Should the auction be met with lower demand, Portuguese bonds are likely to pare their early week recovery (which has been partly on the back of an upbeat EU summit), which in turn may push benchmark 10-yr yield back towards its recently breached Euro-era high.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
