Between October and yesterday performance is 0

Us and European bond markets yesterday had a renewed risk aversion, caused by the tightening of credit conditions in China, could hamper economic recovery. Rates to 10 years are are relaxed step basis, 3,725 in the United States less than 9 points, while the German rate conceded 3 points to 3.31. The rate move in the opposite direction of bond prices.

Yet, this week is historic regards the volumes of sovereign debt issued on both sides of the Atlantic. The United States opened the ball, Monday evening, with the placement of a duty to 10-year inflation. Last night, they have issued 40 billion securities in 3 years. "The real test will be held today and tomorrow, with the reopening of the 10 years and 30 years, for a total of 34 billion dollars," Calyon strategists warn.

In the euro area, the repayments and payments of coupons, which are currently bail out investors, to absorb the influx of titles. According to BNP Paribas, 20.5 billion euros must be placed on the market this week. Yesterday, the Netherlands have been active and the Austria, who has chosen to use the syndication, safer to place 4 billion euros of bonds to 7 years. Italy, Germany, Portugal and Spain will also facilitate the sovereign primary market here on Friday.

The Greece issues of the short term

A country particularly drew attention, Tuesday: the Greece is indeed manifested in short term debt markets to raise 1.6 billion euros. The country, which saw her score lowered by agencies rating late last year, was forced to pay much higher than a few months ago. Between October and yesterday, performance is 0.91-2.20 on paper to 1 year from 0.59 to 1.38 on titles in 6 months. The ratio of coverage, to measure the extent of the subscription by investors, has also fallen since the award of the same titles last October. The Greece has indicated recently that it might appeal to private placement of debt of medium and long term. Through this, it could get less adverse than a bank syndication financing conditions.

Greek rates are are strained on all maturities yesterday. The performance of the loan to 2 years flew by 27 basis points, to 2.92 r and one of the 10 years jumped 14 points, to 5.64. The offering of securities is not the sole cause of these tensions. The bond has also been victim of a report by the European Commission, involving the reliability of the local statistics about the deficit. This publication coincides with the arrival of representatives of the international monetary Fund (IMF) in Athens to assist the Government in its project of improvement of public finances.

Markets, which were abated early in the year, were again beset by serious concerns. The Greece risk premium rose to 2.33. This indicator measures the surplus earnings that must provide the country from the Germany to place titles in 10 years.

Greek CDS is tended by 25 points, to 280 basis points. "credit default swaps" measure the cost of insurance to protect themselves from the risk of default of an issuer.