If markets turn on any Euro national govt this one is a prime candidate
Subject: initial thoughts on greece downgrade: CDS maybe a couple of bp
Initial thoughts on greece downgrade: CDS maybe a couple of bp wider and bonds more or less a non event.
The deficit numbers aren’t really new news – central bank governor Provopoulos said that he expected a 12% deficit this year in the week after the Oct 4th elections, and the press was speculating 14%.
The new government are busy dragging all the skeletons out of the cupboard, trying to make a clean break.
Depending on the level of cash balances, additional issuance this year could be around 10bn.
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