Who’s Done What
We saw some fresh volatility in euro bond markets with Italy’s borrowing costs once again topping 7% – a danger point which previously forced Ireland, Greece and Portugal to seek international bailouts. We also saw Moody’s downgrade 10 German public banks on the assumption that the likelihood that these banks could access external government support has diminished.
We have seen some data out this week that indicates the Easing in the US is helping their economy but it won’t do much to stave off the risks in Europe.
Last night the Australian Dollar dropped below parity for the first time since October 12th.