Categories:
International Macroeconomics
“The pricing is awful,” said Padhraic Garvey, rate strategist with Dutch bank ING in Amsterdam. “The object of the exercise this morning was to get the job done and they’ve done that, but that’s about the only positive thing to say.”
Investors’ attention will now turn to a bond sale of up to 8 billion euros that Italy is planning for next Tuesday.
Have a nice day. (Tyler Cowen sees the same story and has a similar reaction.)
READER COMMENTS
joshua
Nov 26 2011 at 6:25am
I hear some investors are waiting for better deals in December…
Ryan Lam
Nov 27 2011 at 4:38pm
The sale of Italy bonds at a discount sure does not come surprising at all, as an act with a sense of desperation to revive any salvageable piece of the economy. The euro bond sale is projected to get Italy out of at least some of its debt.
From the standpoint of a foreign investor, how ideal is it to take this risk? I would assume bonds with much longer maturities would be the most realistic.
With Germany’s not very successful attempt at a bond sale, would it be safe to say that its performance may have any bit of reflection on what Italy’s bond sale may end up to be?
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