Portuguese worries hit demand at Greek debt sale

canada goose outlet nyc LONDON, July 10 (Reuters) Concern about the health of a parent company of Portugal largest bank hurt bonds from the euro zone periphery on Thursday, curbing demand at Greece second debt sale following its 2012 default. canada goose outlet nyc

canada goose outlet uk It was the first significant canada goose episode of contagion for peripheral markets in 2014. Debt yields in those markets reached record lows in the first canada goose clearance half of the year, helped by ultra easy European Central Bank policies that let countries sell debt easily regardless of their ratings or economic situation. uk canada goose outlet canada Canada Goose Coats On Sale goose outlet canada goose factory sale uk

canada goose outlet online Espirito Santo Financial Group, the canadian goose jacket largest shareholder in Portugal Banco Espirito Santo, said on Thursday it had decided to suspend its shares and bonds, citing difficulties at its parent company, ESI. canada goose outlet online

canada goose outlet online uk Separately, Portugal securities market watchdog, CMVM, said it was analysing a major investment by Portugal Telecom in the debt of Rioforte, a holding company of the Espiroto Santo group. canada goose outlet online uk

Sources told Reuters on Wednesday that Espirito Santo was considering debt for equity swaps and may ask for more time to repay debts, canada goose clearance sale as it grapples with the financial problems.

The government in Lisbon has repeatedly said that BES is isolated from the holding company problems and there is no risk to public finances. However, the turmoil has led to a sharp sell off in Portuguese government bonds and had repercussions for other markets as well.

canada goose outlet canada Greece sale canada goose uk outlet of three year bonds drew mediocre demand compared with recent offerings buy canada goose jacket cheap from euro zone peripheral issuers. Athens raised 1.5 billion euros, well below the 2.5 billion to 3 billion euros it was widely expected to achieve. canada goose outlet canada

canada goose outlet in usa Total bids were only 3 billion euros. That looked lacklustre to many market players who are used to seeing order books several canada goose black friday sale times that size at a peripheral euro zone debt sale. canada goose outlet in usa

canada goose outlet uk sale Spain Banco Popular Espanol, meanwhile, was forced to postpone the sale of contingent convertible debt citing poor market conditions, according to a lead manager on the planned deal. canada goose outlet uk sale

official canada goose outlet Guido Barthels, chief investment officer at Luxembourg based Ethenea, was initially interested in canada goose coats on sale the Greek bond sale but was put off by what was happening in Portugal. official Canada Goose Outlet canada goose outlet

is not a good day to come to the market for Greece, Barthels said. what happening in Portugal, it does not make a whole lot of sense to touch that.

Yields on Portuguese 10 year bonds rose 21 basis points to 4.01 canada goose uk black friday percent, dragging their peripheral peers with them. Greek yields were 20 bps higher at 6.32 percent. Spanish and Italian yields rose 6 bps to 2.82 and 2.94 percent, respectively.

canada goose outlet Some market participants said contagion from Portugal appeared overdone. canada goose outlet

do not think the problems emanating from the BES debacle should be seen as a systemic issue for the sovereign, and feel that the contagion effects are Canada Goose Online overdone and likely exacerbated by positioning and poor liquidity, said Martin Harvey, European bond manager at Threadneedle Investments.

canada goose outlet black friday said that, it is a reminder that peripheral nations will continue Canada Goose Parka to face sporadic mini crises due to the deep structural problems their economies and financial systems face. canada goose outlet black friday

canada goose Canada Goose Jackets outlet parka DIFFERENTIATION The Greek bond was sold at a yield of 3.50 percent, the lower end http://www.canadagoosejacketoutlett.com of a 3.50 3.625 percent price guidance. That is higher than those offered by all 10 year euro zone bonds apart from Portugal canada goose outlet parka

goose outlet canada Investors canada goose coats in Italian debt, for example, would have to buy a 15 year bond to get a higher yield than Greece three year paper. German 30 year paper offered 2.16 percent. goose outlet canada

Market action suggested that investors were cheap canada goose uk still differentiating between peripheral markets, though.

canada goose outlet new york city Aid receiving Greece and Portugal, which emerged from its bailout less than two months ago, were seen as the most vulnerable. Irish 10 year yields were 2 bps up at 2.34 percent; the country saw record low borrowing costs at an auction of 500 million euros in 10 year bonds. canada goose outlet new york city

canada goose cheap Canada Goose black friday sale Spain also held a smooth sale of 1 billion euros of 10 year inflation linked bond at an average yield of 1.46 percent. canada goose black friday sale

canada goose outlet store seen a very strong sale in Ireland, said Michael Michaelides, rates analyst at RBS. broader correlation still stands in the periphery but now you see increasingly that when there is a particular story in one country, that market moves a lot more than the others. canada goose outlet store

That differentiation will last as long as the euro zone stays clear of any systemic risks, such as those in 2012, when Greece Canada Goose sale was on the brink of crashing out of the currency union following its default.

canada goose factory outlet Greece bond sale is a hallmark of its recovery. The country is slowly emerging from a six year recession and is running a budget surplus before interest rate payments. canada goose factory outlet

canada goose jacket outlet But the new bond comes with a caveat. One of the most attractive features of Greek debt before this sale was that the country had no debt to pay back for canada goose outlet the next five years, hence no near term financing risk canada goose jacket outlet.

50 percent, the lower end of a 3

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