STOCK MARKET WATCH -- Tuesday, 23 June 2015

[Demeter]

11. Italian, Spanish, Portuguese yields fall after new Greek proposal

http://www.reuters.com/article/2015/06/22/markets-bonds-euro-idUSL8N0Z839C20150622

Italian, Spanish and Portuguese bond yields fell more than 20 basis points on Monday after the European Union welcomed a new offer by Greece on a reform package that signalled 11th-hour concessions to avert default.

Greek 10-year yields dropped 141 basis points to 11.23 percent and two-year yields dived 485 basis points to 23.65 percent, their lowest in two weeks.

EU Economic Commissioner Pierre Moscovici said he was convinced that euro zone leaders holding an emergency meeting in Brussels on Monday would find a way out of the Greek crisis.

It was not immediately clear how far the new proposal from Athens acceded to creditors' demands for additional spending cuts and tax hikes. Euro zone finance ministers said they required detailed study and it would take several days to determine whether they can lead to an agreement to avert a default.

"The odds seem to shift in favour of a compromise," said Rainer Guntermann, rates strategist at Commerzbank....MORE