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Market Pulse: Germany sells €3.3 billion of 5-year debt

Wednesday, February 08, 2012 - 03:27

Feb. 8 - Bid to cover ratio was lower than previous auctions, but solid, say analysts, as a deal on Greece seems imminent.

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Germany's LC point three billion euros of bonds at auction and rising buying stocks with European equities it's a six month high. This -- today's market pulse. Well the black -- to today's market activity is growing optimism big politicians who finally reach agreement on the phones that will secure the second aid package was put on 150. Billion euros. Joining me from the London Stock Exchange is unjust -- director of capital markets at ITC markets. I'm just a said that there's hope there's a rising optimism over these. I -- that the most acute phase of this crisis appears to be behind us. Yet Germany still manages to attract strong demand for its phones why did you walk in point 91% for five years. Well I think there's a little fist then in the markets invest this profess to have that -- that -- -- rather than we kind of let up until. So you know there's a lot of fear that going on and I think we're gonna see a bumpy ride for the next month us so. -- mainly mainly through. The news from Greece. Whether they agreed on north to you know to actually it -- Detroit for the month. Welcome to Greece and a second but so we just appeared to be heading above to the saint on the ten year Ngo. Which is held in front of some weeks and months -- you expecting you to go it and in the short time. In the short term I think that would go down I think that would go down because of the general Thea. But that Greece might spread after the PSI in Greece he might spread to Portugal or even other countries so. I think that investors tend to actually go back to. The safety of the German -- So you still see some contagion risk in -- -- going to Portugal. What do by the European central buying what should be ECB be doing -- over the next 2414. It's I was up on these and it's an involvement. Well that is one very good thing that the group can do in basic they can do right now as bodies get rid of the bonds that they have they they Greek bonds. I mean the idea of selling these -- but to -- EFSF even not cost. Would gravely and -- the prospects of the PSI it loaded with really leave completely the holdouts. No one is gonna hold about. On the PSI if they ECB is out of that. Everybody's free ride in on the CB. Save -- to be wrong so the Greek bonds that these people's. -- sold through the if the sample but given to Greece and across. You know the FSF can actually give a loan to Greece to actually buy these bonds back up cost which is -- on making. And effectively meaning that kind of the senate at that too. Okay and Chris thank you very much. Well optimism over deal for -- -- up stocks across you know. If they see unify us as a six month high today how does not broken several key long term technical resistance levels on the -- -- -- particular the 200 day moving average driving this move has been -- performance yet again of banks. Flush with cheap ECB -- yes they are flirting with -- market territory up 20% so far this year. Earlier today the Bundesbank said German banks come absorb a 70% discount -- -- -- but the -- any of them and jeopardy. Well today's market pulse Jonas I think we DF twelve GMT the market pulse thanks -- we look at what's moving on why. And I'm giving you -- this is what we. It means that it you know really. -- -- --

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Market Pulse: Germany sells €3.3 billion of 5-year debt

Wednesday, February 08, 2012 - 03:27