With aim to produce compelling elements to justiceThe management may change patents remain Therefore much time to earn enough observationsThe debate over fiscal stimulus is surrealtake on the coast with weapons and baggageThere was until then the dismissal or resignationTherefore take care to two major pitfalls1 of the vote in 1999 with Charles PasquaEnhance in reference to the nature of the activitiesIn the first place the English and RussiansThe United Kingdom inflation statistics have taken short financial markets. Consumer prices increased by 3.2 in February from the same month of the previous year, forcing the Governor of the Bank of England (BoE) to be justified in writing on this excessive level. Experts projected only 2.6, after 3 in January. The figure is all the more surprising that the spectre of deflation is currently threatening the world economy. The reason for this unexpected thrust of prices is to the depreciation of the pound sterling, which added the cost of certain imported goods.
The announcement was made waves. The British currency strong appreciation, not less than winner 2.21, to 0,9175 against 1 euro, and 1.4, to 1,4723 dollar, returning to its levels in early February against the greenback.
"Quantitative easing".
In addition, Mervyn King, head of the BoE, explained that, if the device of "quantitative easing" put in place a few weeks ago was successful, the Institute of issue would go back. These words, spoken at the time where the inflation risk has resurfaced, have maintained a slight uncertainty about the use of the 150 billion allocation for the purchase of bonds. "The market has surréagi and correction should quickly follow, says Cyril Regnat, at Natixis. The scenario of disinflation marked in Britain this year remains topical. "Yesterday, the British rates to 10 years is is stretched by 20 basis points, 3,329. The Gilt of the program of the BoE was abandoned. Moreover, the gap between the British rate in 10 years and the 10-year German is again positive since three sessions. The launch of the program of purchases of British borrowing had back rates of the United Kingdom below the Bund, which serves as a reference. The lowest, the Gilt fell to 2,949, March 13.
Irish exception
Yesterday, the euro area bond market was also under pressure. The German Bund won 13 basis points to 3,146. Notable exception: the Irish 10-year rate is relaxed by 12 basis points at 5,447. The Ireland bonds were sought, despite the arrival of new papers on the market. The country has made comeback on the primary market after four years of absence failure recorded unionized operations recently. The Ireland sold securities maturing 2020 EUR 700 million and 300 million euros of securities due 2011. Coverage rates, which allow to measure supply demand, have been relatively high in both cases. Debt 2020 has been awarded to the average rate of 5.8, i.e. a significantly higher yield than offered in 2005. The gap between the Irish and German rates now is 230 points base on the 10-year maturity, while more 245 points early March.
A movement of convergence is also at work in recent weeks in the euro area. The performance of Greek debt exceeds the Bund of only 265 basis points, compared to 310 points, three weeks earlier. The decline in risk aversion and speculation on future purchases of loans of State by the European Central Bank (ECB) some experts citing an effort focused on the debts of the States that suffer the highest risk premium support this movement.
