Liquidity crisis? You’ve got to be joking

04 Dec 2007

Suggestions that European government bonds have been struck by illiquidity, and that states could find it hard to raise finance, are rubbish. Spreads over Bunds may have widened a bit in the flight to quality, but all governments are funding at lower yields than in June.

A report in Monday’s Financial Times paints a gloomy picture for euro zone governments, state agencies and supranational banks.
The reader could easily be led into thinking that the end is nigh for euro zone governments, and that, like companies and financial institutions, they have fallen victim to ...

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