Mark Grant News
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Yields on Greece’s new bonds may climb to as high as 20 percent amid “material risks” stemming from implementation of terms for the biggest sovereign restructuring in history, according to Morgan Stanley.
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Price swings in the Treasury market are at the lowest level since June with investors reluctant to sell U.S. debt amid concern European leaders will be unable to contain the region’s sovereign-debt crisis.
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Treasury yields were little changed after a government report showed producer prices unexpectedly dropped in December.
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Germany failed to get bids for 35 percent of the 10-year bonds offered for sale today, propelling borrowing costs in Europe higher and the euro lower on concern the region’s debt crisis is driving away investors.
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U.S. stocks slipped, capping the worst Thanksgiving-week loss since 1932, and commodities fell as a reduction in Belgium’s credit rating and reports that Greece is demanding bondholders accept larger losses fueled concern Europe’s debt crisis is worsening. Treasuries fell.
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Europe’s banks will compete with their governments to borrow $2 trillion next year as the two groups refinance maturing bonds and bills.
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U.S. stocks fell, capping the worst Thanksgiving-week drop since 1932 in the Standard & Poor’s 500 Index, as S&P cut Belgium’s rating and a report said Greece is demanding private investors accept larger losses on their debt.
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Mark Grant, managing director at Southwest Securities Inc., talks with Bloomberg's David Wilson and contributing editor William Cohan about the choices facing Ireland's government as it asks the European Union to bail out its banking system, and the potential for failures in other EU countries.
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German government bonds dropped after the nation missed its maximum sales target at a bund auction by 35 percent, sending the euro lower and 10-year yields higher than comparable U.S. Treasuries.
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Japanese investors are buying more bonds in the U.K. than in any other nation overseas as Europe’s struggle to control its debt crisis left Germany unable to complete a sale of securities yesterday.
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