Spain and Italy take new measures, ECB to intervene
In a statement released on Sunday the ECB signalled that it is ready to buy Italian and Spanish government bonds after the announcements made by both countries on fiscal and economic reforms. The Central Bank stressed that it ‘will actively implement its Securities Markets Programme’ and in HSBC FI Research’s view, such a move by the ECB should result in a significant…
US debt downgrade – bond yields to fall
Report: The downgrade was expected by markets and given the US dollar’s reserve currency status, the risk is more for the currency than the bond market in the opinion of HSBC Research. It could have been worse if this decision had been delayed and with the downgrade out of the way markets can focus on what really matters – the weakening US economy. The US is a true sovereign, so should not be compared with Italy, for example, the country currently at the centre…
Germany and France to approve EFSF by end September
In a joint statement issued on Sunday, Germany and France re-affirmed commitment to the 21 July agreement, whereby the EFSF will be empowered to conduct bond purchases in the secondary market and provide loans to governments from bank recapitalisations. Both countries underlined the importance of the nation’s parliamentary approval of the agreement by the end of September…
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HSBC Global Research