European Banks Dumping Bonds Could Worsen € Crisis


European Banks Selling Sovereign Bond Holdings Threatens to Worsen Crisis – Bloomberg.

Banks are selling debt of southern European nations at  a loss and that raises the yields those countries must offer to sell their bonds in the markets.

With bonds, their price is inversely proportional to their yield; the lower the market price the higher the yield offered.

The move by the European banks could be interpreted as a vote of non-confidence in the ability of the Euro block to sort out its difficulties.

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