Government bond yields rise. Lagarde reassures about Evergrande's risks

2021-09-25T09:03:00.937Z

In the middle of the session, the decreases of the European stock exchanges continue. In Milan, the Ftse Mib index drops by 0.33%, the weekly balance + 1.05%. Among the main sectors in Milan only banks are rising. It is worse in the rest of Europe, especially in Paris (-0.9%) and Frankfurt (-0.7%). Data from the Ifo Business Confidence Index in Germany were released today. There was a decline in business confidence, from 99.4 to 98.8, slightly worse than expected. Equity markets welcomed Wednesday's announcements from the Fed, the US central bank, of the early departure of the reduction in purchases of securities under the anti-pandemic program without trauma. However, government bond yields are rising in the US and Europe. That of the Italian ten-year BTP today rises by 6 basis points, to 0.79%.The spread with the German Bund rises to 102 basis points. While there is nervousness for the Evergrande case, at risk of bankruptcy. Today the colossus has fallen by almost 13 percent. Yesterday he honored a local currency debt but has not yet said anything about another bond that matured yesterday, in dollars and probably held by foreign investors. The Wall Street Journal wrote that Beijing authorities are asking local governments to prepare for the group's possible bankruptcy. The president of the ECB, Christine Lagarde, spoke on the issue today: the central bank - she said - is monitoring the debt of Evergrande but in the Euro area direct exposure would be limited. Meanwhile, the oil race does not stop. Today Brent is trading at $ 77 and a half a barrel. We are on the maximum values ​​fromOctober 2018.