The Dawn Of Europe'S Debt Crisis

　　 Although Portugal's sovereign credit rating was downgraded again, Greece, which was at the centre of the European debt crisis, successfully made a short-term treasury bond in July 13th and was oversubscribed by investors, indicating that the market's concerns about the European debt crisis eased.

Besides, European Union The announcement of the "stress test" of European banking institutions this month will help clarify the exposure of European financial institutions in the European debt crisis and enhance investor confidence. There are signs that the recent European debt crisis that plagued the world economy and global financial markets will usher in a daunting light.

Greece successfully made a total of 1 billion 630 million euros in 13 days, with a period of 26 weeks. National debt 。 The interest rate of the Treasury bond is as high as 4.65%, which is alarming in the short-term treasury bonds. Fortunately, investors subscribed enthusiastically, and the auction funds were 3.64 times the total amount actually sold. Last week, Spain, another eurozone country on the brink of debt crisis, also successfully made 6 billion euro bonds, with a subscription amount of 14 billion 500 million euros. This shows that some investors value the high yield of the euro zone national debt, willing to take greater risks, and even do not exclude some investors from making the layout of "market entry".

In May 2010, because the interest rate of treasury bonds was too high, Greece gave up financing through the market and turned to the European Union and the International Monetary Fund (IMF) for joint relief. At that time, the European Union and IMF provided a total of 110 billion euros, three years of rescue plan, conservative Greece is expected in the next three years can no longer enter the market financing. Not long ago, a ministerial official of the Greek government once said that with the positive progress made by the Greek government in reducing the deficit, Greece is likely to enter the bond market ahead of schedule and reissue the national debt. Greece has successfully returned to the market in just two months, which is of certain significance.

In addition, when Greece successfully returned to the international bond market, Portugal's sovereign credit rating of another euro zone "fragile state" was downgraded by Moodie, but the latest development did not have much impact on the market. Generally speaking, if the bad news does not produce the expected negative impact, it also shows from one side that investor confidence has been improved and the ability to bear bad news is increasing.

In addition to the successful sale of bonds and oversubscriptions in Spain and Greece, another sign of the dawn of the European debt crisis is that the prices of credit default swap (CDS) contracts in Greece, Spain and Portugal have begun to fall, indicating that investors' concerns about the risk of default in these countries have eased.

Europe debt crisis The most important reason is that the EU and IMF introduced a total of 750 billion euro rescue mechanism in May. This pre emptive move has been unprecedentedly unprecedented and astonishing. So far, the rescue mechanism has not yet been officially launched, but it is a great encouragement to investor confidence. From the actual situation of the past two months, this relief mechanism has played a role of "backing the market" to a certain extent.

In addition, Greece, Spain and Portugal are actively implementing the austerity plan. Although there are occasional reports of strikes and demonstrations against the government's austerity, overall, the austerity plans of these countries are proceeding according to plan, and the results are expected.

Another positive factor driving the dawn of the debt crisis in Europe is that the European Union will announce the stress test results of European banks in July 23rd. When the European banks are deeply implicated in the European debt crisis, this key problem may be revealed, which will help investors see the market situation, reduce uncertainty and misjudge.

In the near future, several euro zone countries will also sell treasury bonds totaling about 30 billion euros. In the next few days, the subscription of State bonds, interest rate movements and the price of CDS will provide a new judgement basis for the European debt crisis.