News/Debt Management
Chinese sovereign debt to be issued using HKMA platform
Hong Kong Monetary Authority and China’s finance ministry reach agreement to allow issuance of renminbi bonds using central bank tendering platform
Irish bailout fails to restore faith in PIIGS debt
CDS spreads on peripheral eurozone debt widen despite €90 billion in aid
Irish woes may spread to other PIIGS
European Union action on Ireland’s bank debts points to fears over contagion spreading across peripheral Europe
Make the right decision: Spain’s Ordóñez to Dublin
Governor of the Bank of Spain suggests Irish officials ask for help as fears grow that Dublin’s resistance to a bailout will trigger contagion
Roubini: Eurozone restructurings will leave bondholders facing losses
Government debt levels in peripheral Europe mean restructurings cannot be avoided, says economist Nouriel Roubini.
DMOs to Basel Committee: leave our bonds out of your buffers
New rules mean banks will have to load-up on government debt, but one apparent beneficiary - debt management offices - are against the idea
Investors demand premium for Portuguese debt
Auction results show rising cost of Portuguese debt, analysts say investors are sending message to government to tackle deficit
Ireland’s debt costs soar
Auction results show demand for Irish debt remains strong, but analysts fear higher financing costs are unsustainable
Honohan suggests Irish deficit forecasts unrealistic
Ahead of bond auction, Central Bank of Ireland governor says higher refinancing costs and less-favourable-than-forecast conditions could stymie deficit reduction; “welcome relief” on Anglo
S&P boosts Argentine rating one notch
Credit ratings agency Standard and Poor’s lifts Argentina’s sovereign credit rating from B- to B; cites strong economic recovery and solid debt management strategy
Spanish debt office in negotiations on credit support annex thresholds
Government agency looks to alleviate funding costs for bank counterparties in swaps transactions
Standard & Poor’s downgrades Ireland
Standard & Poor’s downgrades Ireland’s sovereign credit rating on fears over fiscal burden imposed by banking sector rescue
Portuguese debt office agrees to post collateral to its dealers
Agency becomes one of first developed-market sovereigns to succumb to dealer pressure as costs of one-way collateral postings grow
Greek debt crisis sparks widening of almost all global CDS spreads
Cost of protecting against a Greek default up 190% in three months to mid-June as CDS spreads widened for 93% of sovereign debt on back of sovereign debt crisis in Europe
IMF resumes financial aid to Ukraine
Fund approves new application for loans after funding was cut off in dispute over its burgeoning fiscal deficit
EU faces tough call on sovereign scenarios for stress tests
European Union officials split on whether to run sovereign debt scenarios on stress tests; plans afoot to extend number of banks tested
BIS fearful over fiscal crunch
Bank for International Settlements warns advanced economies that rising debt levels risk hindering long-term performance
CentralBanking.com panel: ECB’s response to Greek crisis too slow
Mike Williams, Paul Mortimer-Lee, and Phil Davis say the ECB should have moved more swiftly to tackle the fiscal problems in Greece
Shilling weakened after Kenya bought euros, say analysts
Analysts link recent weakness in Kenya’s shilling to euro purchases by the central bank
ECB’s Bini Smaghi: Greece cannot default
ECB’s Lorenzo Bini Smaghi says an orderly default is simply not an option to solving Greece’s fiscal burden
Libor climbs as uncertainty in European markets grows
Libor rises to highest in more than ten months as lending in European markets slows down
Dubai World agrees restructuring terms
Government owned investment company agrees the terms of a $23.5 billion restructuring effort with creditors and state; markets welcome news
Central banks in biggest US Treasury sell-off for three years
Federal Reserve data shows foreign holders of US treasuries moved away from the dollar
Senate okays disputed Argentine reserve transfer
Lawmakers in Argentina's upper house approve president’s decree to transfer $4.4 billion of central bank reserves to bond repayment fund