Europe Update: More Bank Funding Concerns

Europe Update: More Bank Funding Concerns
From the Financial Times: Funding fears hit European bank stocks

Worries that the eurozone debt crisis could infect the financial system hit the short-term funding markets ... Switzerland’s two largest banks, Credit Suisse and UBS, both denied they had made use of the Federal Reserve’s swap facility ...
excerpt with permission

There is no panic in the bond markets. Some of the spreads have widened, but that is mostly because of lower German yields.

Here is a graph of the 10 year spread (Italy to Germany) from Bloomberg. And for Spain to Germany. The Italian spread is at 283, down from 389 on Aug 4th, and the Spanish spread is at 286, down from 398 on Aug 4th. The yield on the Spanish Ten and Italian 10 year bonds are under 5%.

Also the Irish 2 year yield is at 8.9%. And the French 10 year is at 2.8%.

Here are the links for bond yields for several countries (source: Bloomberg):

Greece	2 Year	5 Year	10 Year
Portugal	2 Year	5 Year	10 Year
Ireland	2 Year	5 Year	10 Year
Spain	2 Year	5 Year	10 Year
Italy	2 Year	5 Year	10 Year
Belgium	2 Year	5 Year	10 Year
France	2 Year	5 Year	10 Year
Germany	2 Year	5 Year	10 Year

on Calculated Risk: http://www.calculatedriskblog.com/2011/08/europe-update-more-bank-funding.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29