Holiday in Europe Keeps Trading Subdued 17/5/2012
While the news flow emanating from Europe has slowed, proving a temporary respite from risky assets, the pressure on Greek banks is growing.
After market chatter and media reports, the ECB confirmed that some Greek banks had turned to the Bank of Greece for Emergency Liquidity Assistance (ELA) pending recapitalization.
After a brief pause, periphery spreads are starting to widen again, lead by Italy and Spain. Spanish auctions found plenty of buyers but at a price as yields rose to 4.40% from 2.96% and Q1 GDP -0.3% q/q and -0.4% y/y as expected.
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