David Prosser: Are the banks dumping sovereign debt en masse?
Outlook Still on the eurozone, why did bond yields spike upwards so sharply once again yesterday? At first sight, there was no reason for investors to mark up the risk of Italy, Spain and other eurozone members.
The answer may lie in the straightforward matter of supply and demand. We know from the trading updates published by Europe's banks in recent weeks that they have been selling eurozone debt (and that many would have sold more had they not been lent upon by their governments not to do so). We also know that the European Central Bank has been buying less debt than people expected – it said on Monday, for instance, that it bought less than half the debt last week than the markets had assumed.
We have, in other words, a glut of supply for sovereign debt and less demand. That gives the ECB a real headache. Does it step up its purchases of bonds in order to prevent yields – and thus market anxiety – rising further? Or does it keep some of its powder dry, given that it currently refuses to countenance any suggestion its purchases will not be finite. These are unpleasant choices for Mario Draghi, newly installed in the President's office, to have to make.
- 1 Forget 'The Dress': Here are five of the biggest news stories you might have missed
- 2 The black and blue dress: Makers considering a white and gold version
- 3 PornHub turns masturbation into energy in bid to save the planet
- 5 Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
PornHub turns masturbation into energy in bid to save the planet
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...