by Calculated Risk on 1/10/2011 08:54:00 AM
Monday, January 10, 2011
Europe Update
• From Bloomberg: Germany May Soften Objections to Fund Increase as Bonds Drop
Germany may soften its opposition to expanding the region’s 750 billion-euro ($966 billion) rescue facility as Belgium’s political deadlock sent borrowing costs surging and the European Central Bank bought Portuguese bonds.• From AP: Greece borrowing rates hit new record
• From Reuters: ECB Throws Portugal a Temporary Lifeline
The European Central Bank threw Portugal a temporary lifeline on Monday by buying up its bonds, traders said, as market and peer pressure mounted for Lisbon to seek an international bailout soon.This will be a key week for Portugal.
If Portugal turns to the EFSF, so much for a firewall between the markets and Spain ... the yield on the Spain 10-year bonds hit 5.53% today.
Weekend:
• Summary for Week ending January 8th
• Schedule for Week of January 9th