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 Jeremy Clarkson 'sees no problem' with his racist language on Top Gear, says BBC
- 2 'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
- 3 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 4 London restaurant 34 creates champagne glass modelled on Kate Moss’ left breast
- 5 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
Russell Brand opposes anti-Semitism after death threats: 'We must disavow all forms of prejudice that lead to exclusion and execution'
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Microbial life found living on the exterior of the International Space Station, say reports
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Bin bag full of cats' heads discovered near Manchester's Curry Mile
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
iJobs Money & Business
£30000 - £40000 per annum + benefits+bonus+package: Harrington Starr: C#.NET ...
£20000 - £30000 per annum + benefits+bonus+package: Harrington Starr: Junior D...
£550 - £650 per day: Orgtel: Business Analyst - Traded Credit Risk - Investmen...
£55000 per annum: Harrington Starr: A financial software vendor at the forefro...