Friday, November 19, 2010

Citigroup (NYSE:C) Sees Greek, Irish, Portuguese Bonds Continuing to Fall

As risks increase for the sovereign debt of Greece, Ireland and Portugal, Citigroup (NYSE:C) says they see bonds in the countries continuing to fall, as the crisis grows.

Citigroup said, “Ireland, Portugal and Greece have underperformed significantly, but we do not think by anywhere near far enough yet. There’s a long way further to go if the situation deteriorates.”

The yield on Irish bonds rose for the third day in a row, with the yield on 10-year bonds increasing by three basis points to 8.28 percent. Bonds from Portugal fell four basis points to 6.88 percent and in Greece they fell one basis point to 11.71 percent.

The other problem is no one knows how much corruption is still involved in the sovereign debt crisis, as Greece recently stated their deficits were larger than they believed, creating uncertainty as to competency or honesty in the matter, both of which are detrimental.

There seems to be a nod and a wink toward these and other countries as well, as the European Union apparently is ready to do anything in order to survive, even if it backfires and punishes the euro like it has been, which could do more to unravel the EU than anything else.

2 comments:

Pedro said...
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Pedro said...

I wonder how much Portuguese debt Citigroup owns. For instance, Citigroud commentators have been quoted in several news releases saying that Portuguese/Spanish bonds will keep increasing.... I wonder how many think-tanks are partially funded by them and do the same thing. It is obviously a hypothetical scenario,but it could be couldn't it????? In my case I don't take it seriously. Obviously Citigroup is biased because it coul hold a percentage of the debt (apparently the markets are so unregulated that we cannot even know the names of the corporations we owe money to!). CONFLICT OF INTERESTS. They want to make profit.