Tightest in a month.
Confident in Portuguese budget moves Sees no back-tracking on economic governance reforms EUR/USD rebounding having run into the aforementioned buy orders down at 1.3850/60. Having been as low as 1.3856 we’re back up at 1.3885.
Government ready at all times to negotiate on budget with opposition For his part PSD opposition bench leader says will not give “blank cheque” to government on budget. Elsewhere, Portuguese/German 10-year government bond yield spread tightens to 370 bps, 12 … Continue reading
Signals from government budget are “worrying” All signs from government 2011 budget are negative Will make final decision on budget vote later
3-month yield 1.595% (previous 0.994%) Bid to cover ratio 3.0 (previous 2.5) 12-month yield 3.333% (previous 3.369%) Bid to cover ratio 2.8 (previous 1.6) Cool. EUR/USD has edged up to 1.3870.
Opposes easiest path of hiking taxes Budget has to focus on spending cuts, not tax hikes Doesn’t feel obliged to pass any budget Awaiting govt budget proposal, will then decide
Govt cabinet meeting Wednesday