Bobbys Corner-Open Market-January.26.2012
Good Morning:
With the ongoing sage between the Greek government and private investors continuing-there have been reports of the private sector accepting a interest rate of less than 4%. This is a major barrier that will now allow Grrece to seriously revamp their debt. Greece has a 14 billion euro payment due in March-and without the help of the IMF or ECB-they will not be able to meet this deadline.
This news pushed the EUR/USD pair into the mid 1.31 handle (1.3173).
Italy sold 4.5 billion euro worth of 3 year notes-with the lowest yield since last August. The yield was 3.763% versus 4.853 on the last 3 year note auction.
Yesterday’s press conference by Fed Chairman Bernanke brought the possibility of a third round of QE to the markets if unemoloyment remains high-so I guess we will see more QE by the 3rd quarter of this year.
He also talked about keeping interest rates low through 2014.
Gold, Silver and Oil are all higher-as are equities and futures.
HAVE A GREAT DAY & GOOD LUCK
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