The Spread touches the minimum for a year and a half

Wall Street
Wall Street

Now there are those who will find an explanation for the following situation: the financial market behaves like pirates, arrives and takes everything that has a value and then goes away.

Despite the International Monetary Fund it has been said on Fiscal Cliff that much remains to be done to put public finances on a sustainable path without damaging the fragile recovery. The infamous spread is shrinking all over Europe which will mean significant reforms.

Wall Street

Wall Street

Yesterday the gap between the German and Italy, ten-year government bonds fell to 275 points, the lowest since mid August of 2011 with rates now down to 4.22%. Similar is the fate for Spain with the ten-year government bonds falling below 5% from the peak of 7.61% in July 2012. As for Greece yields have closed over 11% compared to the maximum of 43.92% in 2012.

Euro

Euro

We’ll see what happens in the future but it is difficult to imagine that the descent will continue in such a linear way.

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