Wednesday, November 23, 2011

World markets slammed by bond warning


European stocks were getting slammed Monday, after Moody's Investors Service issued a dire warning on French bonds, and Asian markets were dampened by pessimistic remarks made by a high-ranking Chinese official
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French bond yields have been on the rise, along with Italian and Spanish bonds -- raising some red flags for Moody's.

Moody's report on Monday focused on the wide spread between French and German 10-year bond yields, the latter considered to be the gold standard of stability in the European bond market.

"Last week, the difference in yield between French and German 10-year government bonds breached 200 basis points, a euro-era record amid increased economic and financial market uncertainty in the region," wrote Alexander Kockerbeck, senior credit officer for Moody's in Frankfurt. Read more at CNN Money

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