Against panic, German Treasury Bills
Fear led to panic, but not necessarily, and panic is driving many. In less than an hour, yesterday I received three calls from friends who told me they had decided to acquire German Treasury Bills. His reasoning for this decision was like: “They are almost three percent and are three to six months. You never know what can happen and it’s good to have money in cash within one time, if the stock takes another turn, invest in a value that has good run.”
We relive days like those of October 2008, but the nervousness now affects those who have a certain heritage. We will not see, as occurred in fall 2008, customers of banks and removing and putting money from their accounts not to exceed the € 100,000 that covers the Guarantee Fund. But among those with true heritage nervousness begins to be similar.
If you fear nothing invades discarded, possibly because you have to justify certain decisions that will amaze yourself. And that is what is happening.
Because of this, much more widespread in Greece, the German Treasury is taking a strong demand for titles that explains that the profitability of its ten-year bond has fallen to 2.86 (do well for Merkel and for all their fellow citizens who have managed the time to help the country Hellene) . Meanwhile the ten-year bond Spanish profitability has risen to 4.17 percent (Too bad for all the Spanish!). The difference in profitability of Spanish and German bond is explained by the dual effect of increased product demand Germany and a decline in the Spanish financial asset purchases.
By: Rafael Rubio
Filed under: finance
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