The electoral map, the demographics behind President Barack Obama’s re-election and the high-end tax increases that were just wrung from the Republicans give Democrats reason to believe that long-term political trends are on their side in budget negotiations. This view, however, ignores what is happening at the state level.
The cost to insure company debt from default fell to a nine-month low in Europe on optimism Greece’s bond buyback will unlock aid and the Federal Reserve will announce steps to stimulate economic growth.
The cost of insuring European debt against default is heading for the biggest weekly drop since September amid optimism European leaders will let Greece get its next aid installment and on new signs of economic recovery.
Gilts declined, pushing the 10-year yield to a three-week high, after European Union finance ministers eased the terms on emergency aid for Greece, damping demand for the safety of U.K. government debt.
The pound rose for the first time in four days against the euro amid speculation an agreement among European finance ministers to ease the terms of emergency aid for Greece will fail to stem the region’s debt crisis.
The cost of insuring European corporate debt from default fell to a six-week low on improving confidence in the global economy, while Daimler GA and UniCredit SpA sold debt as borrowing costs held near record lows.
Spain’s 10-year bond yields fell to the lowest in eight months and the rate on similar-maturity Italian debt dropped to the least since 2010, signaling the debt crisis that triggered global financial-market turmoil is easing
Spain’s bonds fell, pushing five- and 10-year yields to euro-era records, as the nation’s borrowing costs rose at an auction amid concern its banks’ and regions’ debts will force it to seek a sovereign bailout.