3 Jan 2014
Flash: Spanish and Italian bonds rallying - BBH
FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that the rally in Italian and Spanish bonds is taking place amid improving economic data.
Key Quotes
“Spain's PMI moved back above 50 (yesterday) and today reports indicate a large drop in December unemployment queues (-107.6k or around 2.2%). Separately, it's preliminary Dec harmonized CPI remained at 0.2% on a year-over-year basis.”
“For its part, Italy reported a 0.6% year--over-year increase in its EU harmonized CPI measure, down slightly from the Nov reading. Even more surprisingly, Italy reported a 1.4% increase in auto registrations (sales). Spanish bonds are outperforming Italy.”
Key Quotes
“Spain's PMI moved back above 50 (yesterday) and today reports indicate a large drop in December unemployment queues (-107.6k or around 2.2%). Separately, it's preliminary Dec harmonized CPI remained at 0.2% on a year-over-year basis.”
“For its part, Italy reported a 0.6% year--over-year increase in its EU harmonized CPI measure, down slightly from the Nov reading. Even more surprisingly, Italy reported a 1.4% increase in auto registrations (sales). Spanish bonds are outperforming Italy.”