Monday, October 31, 2011

Europe: Greece to Hold Referendum on Debt Deal in December or January

by Bill McBride on 10/31/2011 06:14:00 PM

This was announced earlier today, but this story has the timing. From the NY Times: Greece to Hold Referendum on New Debt Deal

Prime Minister George Papandreou announced Monday night that his Socialist government would hold a rare national referendum on a new debt agreement for Greece ... Mr. Papandreou said that the decision on whether to adopt the deal, which includes fresh financial assistance for the country but also imposes unpopular austerity measures, belonged to the Greek people. “Let us allow the people to have the last word, let them decide on the country’s fate,” he said ... Government sources said that the confidence vote was expected by the end of the week, with the referendum much later, in December or even January.
So there will be a vote of confidence by the end of this week, and then a general referendum later.

The Greek 2 year yield is down to 77.7%. The Greek 1 year yield is down to 158%.

The Portuguese 2 year yield is up to 18.3% and the Irish 2 year yield is up to 8.8%.

The Spanish 10 year yield is at 5.54% and the Italian 10 year yield is up to 6.1%.

The Belgian 10 year yield is at 4.4% and the French 10 year yield is down to 3.1%.