The Chicago Fed National Activity Index (CFNAI) for June rose modestly, suggesting that recession risk eased. Although the 3-month moving average of the index increased to -0.20 last month from -0.38 in May, the June number was the fourth straight month of below-zero readings, which “suggests that growth in national economic activity was below its historical trend,” the Chicago Fed reports.
Daily Archives: July 23, 2012
Strategic Briefing | 7.23.12 | The Spanish Risk Factor
Spanish Yield Reaches Record on Regional Bailout Concern
Bloomberg | July 23
Spanish bonds slumped, with 10-year yields climbing to a euro-era high, after El Pais said six regions may ask the central government for financial assistance, increasing concern the nation will need additional aid…. “The probable bailouts of some Spanish regions is weighing on markets and pushing up yields,” said Craig Veysey, head of fixed income at Principal Investment Management Ltd. in London, part of Sanlam Group, which manages $72 billion. “There is concern that Spain might be looking for a sovereign bailout sooner rather than later as a result of having to bail out the regions. Yields at current levels aren’t viable for Spain.”