The rent money 0 will remain at this level

The prospect of a record lift of debt this week in the United States has for the moment did not plunge the bond. State bonds stood yesterday with the concerns caused by remarks from the White House economic advisor and the emergence of the swine flu epidemic. The performance of the 10-year bonds relaxed 2 points, at 2,9772, while the critical threshold of 3 had almost been reached Friday. The rate to 2 years has given 5 points, to 0,9160.

For the first time in history, the United States will issue more than $ 100 billion of debt in a week. This amount includes 40 billion on bonds to 2 years, 35 billion securities in 5 years and 26 billion over 7 years. The first award was held yesterday evening over the 2 years and went relatively well. "Our concerns focus more on the operations of longer maturities, but generally, this week is very risky for the American bond," said Ciaran O'Hagan, in Société Générale.

The previous record of programming dates back to the last week of the month of February, where not less than 94 billion of securities were placed on the market, pushing the rate 10-year above the 3 threshold below which it evolved since late November 2008.

Non-conventional measures

Strategists believe that this is implicitly covered by the Federal Reserve. On 18 March, to General surprise, the Fed has embarked on a programme of loans of State purchases in the wake of the Bank of England. By these non-conventional measures the monetary authorities try to maintain rates at low levels. Since the announcement of this device, in March, the rate to 10 years it is relaxed that of 3 basis points: after a plunge of nearly of 48 points the same day, the yield rose but without the Cape of 3. "It is possible that it happens this week, which would also offer an opportunity to purchase", continues Ciaran O'Hagan. The Fed's monetary policy Committee will make its verdict tomorrow. The rent money, 0, will remain at this level. Market participants expect a strengthening of the program of quantitative easing to limit the chances of the rate to 10 years to settle above 3.

The environment is less conducive to government bonds. Investors have found appetite for risk. Reflected in the seven weeks of rebound of the stock market. If the macroeconomic figures show new signs of improvement and that the result of the "stress tests" American banks is encouraging, this trend can be confirmed.

On the other hand, the bloated offering of securities in the market weighs. This week are announced in the United States estimates of quarterly financing needs. According to the Securities Industry and Financial Markets Association, which brings together the professionals, the Government will follow 466 billion this quarter.

Finally, in Europe, rates themselves are also a little relaxed yesterday. Thus, the performance of the German 10-year loan conceded 3 points, to 3,159. Emission volumes strongly increased this week, from 1 billion to 15.5 billion euros. But the liquidity in the market makes up for this offer. From BNP Paribas, reimbursements and coupon payments totalled EUR 55 billion.