Euro-area plans to ensure banks have additional capital buffers are a “distraction” from the need to address sovereign-debt risks, Royal Bank of Scotland Group Plc said.
Greek bond investors, “scared witless” by the recent surge in yields may use any rally in the securities to sell them, damping their advance, Royal Bank of Scotland Group Plc said.
European bonds from France to Italy rose as tumbling rates on short-term loans showed banks were willing to lend cash to one another for almost no fee.
The European Union would fight any suggestion of debt restructuring by Greece, because it would imply a failure of the bloc’s bailout plan, Royal Bank of Scotland Group Plc said.
Italian and Spanish 10-year bonds dropped, pushing yields up to euro-era records versus benchmark German bunds, on concern that slowing growth will hamper efforts to tame the nations’ debt loads.
Greek bonds slid for a third day as Finance Minister George Papaconstantinou said a tax-revenue shortfall is hampering government efforts to reduce the nation’s budget deficit.
Spain’s 10-year bonds climbed for a seventh day, matching the longest run of gains since September, as Royal Bank of Scotland Group Plc said the rally in the securities of Europe’s most-indebted nations can extend.
"Front-end anchoring and negative rates that the ECB gave us last week is getting increasingly priced in."
- Harvinder Sian on Jun 13, 2014
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