Posted On: November 29, 2011
Tuesday saw the world's reserve currency fall in value to the majority of its rival currencies while the common currency climbed even as the third-largest economy it serves showed signs that the sovereign debt scourge is strengthening, according to
Borrowing expenses in Italy once again rose to 8 percent on Tuesday, a significant development since Portugal, Ireland and Greece requested bailouts after their borrowing costs touched 7 percent, Bloomberg reports
. The Rome-based Treasury's bond auction achieved the equivalent of $10.1 million in bond sales on Tuesday.
"These are hopelessly unsustainable yields and reflect the panic that is enveloping the euro zone," states an email note from managing director Nicholas Spiro with Spiro Sovereign Strategy in London to Bloomberg.
Investors are gravely concerned about Italy's plight since its debt burden is believed to be larger than that of Spain, Greece, Ireland and Portugal combined.
Finance ministers from euro zone nations are slated to meet on Tuesday in Brussels as part of an effort to come to grips with the debt scourge, which includes widening their capabilities and confront the tempest that has wreaked havoc and persisted for 24 months.
Category: Industry News
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