by Bill McBride on 8/24/2011 10:31:00 AM
Wednesday, August 24, 2011
The euro zone must continue to stand by Greece while it carries out a decade of reforms ... Wolfgang Franz, chairman of the independent council of economic advisers to the federal government ... said in a telephone interviewFrom the Telegraph: Finland threatens to withdraw Greek bailout support
Mr. Franz struck ... said he was "horrified" by the Finnish government's request for collateral against its next tranche of aid, saying that this could cause the whole deal to unravel.
"This is a discussion that should be ended as soon as possible," he said. "This is the exact opposite of solidarity."
Jyrki Katainen, the Finnish prime minister ... said that if Finland's bilateral agreement with Greece over collateral payments was overruled, the Nordic country could back out of the rescue programme.The Portuguese 2 year yield is up some to 13.3%, otherwise there is no panic in the European bond markets. Right now this is just an issue for Greece.
He told reporters that the private collateral agreement, in which Greece agreed to give Finland €1bn (£875m) in cash in return for its support, was "our parliament's decision that we demand it as a condition for us joining in".
Here is a graph of the 10 year spread (Italy to Germany) from Bloomberg. And for Spain to Germany. The Italian spread is at 282, down from 389 on Aug 4th, and the Spanish spread is at 279, down from 398 on Aug 4th.
Also the Irish 2 year yield is at 8.9%. And the French 10 year is at 2.87%.
Here are the links for bond yields for several countries (source: Bloomberg):
|Greece||2 Year||5 Year||10 Year|
|Portugal||2 Year||5 Year||10 Year|
|Ireland||2 Year||5 Year||10 Year|
|Spain||2 Year||5 Year||10 Year|
|Italy||2 Year||5 Year||10 Year|
|Belgium||2 Year||5 Year||10 Year|
|France||2 Year||5 Year||10 Year|
|Germany||2 Year||5 Year||10 Year|
Posted by Bill McBride on 8/24/2011 10:31:00 AM