Awesome great news from citi:
1647 GMT [Dow Jones] CitiFx says the key result of the actions in Europe are that credit risks associated with holding the debt of the periphery of Europe are no longer what they were last week. " bottom line is that if you held Greek paper last week you were exposed to the risk of a Greek default. Now your exposure is to Europe, as that Greek paper is effectively backed by the other governments of the Eurozone," it says. "This is a major step towards getting to the heart of the problem in Europe...a single European bond market," Citi says. If successful, it will be a major part of strengthening EUR as a serious global reserve currency, it adds. (don.curren@dowjones.com)
By Neil Shah
In a sign that pressures in Europe’s troubled bond markets are easing, debt-laden Portugal successfully raised �1 billion ($1.27 billion) in cash from private markets on Wednesday.
Prices of euro-zone government bonds are also stable or slightly higher, with the cost of insuring against sovereign-debt defaults in Greece, Ireland, Portugal and Spain falling and the euro advancing.
It’d be worrying if these bond prices weren’t rising � since the European Central Bank is now raising cash and buying them, supporting prices.
“The auction represented a very important test for Portugal and more in general, for the periphery. We would judge today’s result as positive overall,” analysts at UniCredit said in a note.
Investors should keep a close eye on upcoming bond sales by the U.K. and countries on Europe’s fringe.
Italy had to pay a slightly higher interest rate to raise cash on Tuesday, though that’s understandable given the tumult in markets. The U.K.’s debt managers also sold �2.25 billion in bonds Tuesday.
The next test comes Thursday, when the Italian government tries to sell a longer-term bond, though analysts expect demand to be solid.
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