David Schnautz News
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Slovenia’s dollar bond yields fell to a two-week low before a series of international investor meetings aimed at building market confidence.
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Slovenia picked banks to organize international bond investor meetings, a day after scooping up twice the targeted amount in a domestic debt sale and easing pressure on the country to ask for an international bailout.
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Italy’s credit rating was cut one level by Fitch Ratings as an inconclusive election in February produced political paralysis that threatens the country’s ability to respond to a recession and the European debt crisis.
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Portuguese bonds are leading gainers among European sovereigns, trumping the safe-haven appeal of German bunds even as the euro-region’s debt crisis approaches its fourth year.
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David Schnautz, fixed income strategist at Commerzbank in New York, says "it's not the time to be brave here" and invest in riskier assets. Schnautz talks with Bloomberg's Ken Prewitt on Bloomberg Radio's "Bloomberg - The First Word."
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German bonds fell as the Bank of Japan sold yen, curbing investors’ appetite for the euro- region’s safest assets.
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Greek two-year notes snapped three days of gains after the nation’s risk of default was raised to 50 percent by Moody’s Investors Service, damping optimism about prospects for an international aid package.
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Bunds will retain their haven allure as investors bet German approval of expanded powers for the euro area’s rescue fund will be no panacea for the debt crisis.
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European nations including Italy, Belgium and Spain may sell more than 33 billion euros ($43.3 billion) of securities this week as credit-rating cuts risk upending optimism the region’s debt crisis is being contained.
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Spanish and Italian two-year notes fell for a third day amid speculation the European Central Bank’s plan to purchase the two nations’ securities won’t be sufficient to stem the regional debt crisis.
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