Italy debt costs keep rising.
Italian debt was bought for 2.96% yield, the previous debt issue was prices at 2.10% for six month bonds. Spain also issued debt early this week and paid 3.24% for six month bonds, which could go even higher for future issuances if there is a formal rescue request to shore Spanish banks.
Italian 10 year bonds are at a 10 year high are above 6%.
Merkel to talk with French President Hollande.
A day after commenting on the Eurobonds as a bad idea as it is â€œeconomically wrong and counterproductiveâ€ the fact is that other European members donâ€™t share her opinion, and it is telling that she is visiting one of her biggest rivals in newly appointed French President Francois Hollande.
This will be the 20th European Summit since December 2009 as per Belgian MEP GuyÂ Verhofstadt
Pre Summit quote:
â€œIâ€™m only looking to whatâ€™s happening in the last meeting between the four leaders – of France, Italy, Spain, and Germany – meeting in Rome on Friday [22 June] whereÂ HollandeÂ says: â€œYeah, I donâ€™t want to give more sovereignty to Europe if thereâ€™s no solidarityâ€, and Merkel saying: â€œI donâ€™t want to give more solidarity if thereâ€™s no transfer of sovereigntyâ€.
Itâ€™s like two children! What do you normally do with such two children? You â€¦ say â€œOK, itâ€™s over nowâ€ with both of them.