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geregetan: kunci euro … 140610

June 14, 2010

Sarkozy dan Merkel Bahas Krisis Utang Eropa
SENIN, 14 JUNI 2010 | 17:47 WIB

TEMPO Interaktif, Berlin -Kanselir Jerman Angela Merkel menggelar pertemuan dengan Presiden Prancis Nicolas Sarkozy di Berlin, Jerman, sebelum mengikuti pertemuan para pemimpin Uni Eropa akhir pekan ini.

Agenda pertemuan kedua pimpinan negara itu pada Senin (14/6) waktu setempat, yakni mengkoordinasikan strategi mereka dalam mengendalikan krisis utang yang tengah membelit Eropa.

Pekan lalu Merkel dan Sarkozy, melalui pernyataan bersama, mendesak Komisi Eropa mempercepat upaya pengaturan pasar keuangan. Menurut keduanya, Eropa harus mempertimbangkan larangan penjualan saham dan obligasi jangka pendek yang terbuka.

Selama dua hari mendatang para pemimpin Uni Eropa akan berkumpul di Brussels, Belgia, untuk mengikuti EU Summit. Agenda pembahasan antara lain mengenai strategi pertumbuhan perdagangan blok Eropa.

RIEKA RAHADIANA | ASSOCIATED PRESS
Treasuries Fall as Signs of Global Recovery Damp Safety Demand
June 14, 2010, 3:42 PM EDT

June 14 (Bloomberg) — Treasuries declined as evidence the global economy is recovering boosted equities and eroded demand for the safety of U.S. government debt.
“There’s increased risk tolerance, and that’s bond- negative,” said Christian Cooper, senior rates trader in New York at Jefferies & Co., one of the 18 primary dealers that trade with the Federal Reserve.
Bonds dropped as a report showed Europe’s industrial production increased in April more than forecast. Treasuries pared losses as Moody’s Investors Service cut the rating of Greece to below investment grade. The rates on Treasury bills slid on demand for quarter-end liquidity.
The yield on the 10-year note rose three basis points, or 0.03 percentage point, to 3.26 percent at 3:38 p.m. in New York, according to BGCantor Market Data. The price of the 3.5 percent security maturing in May 2020 dropped 7/32, or $2.19 per $1,000 face amount, to 102.
The 4-week bill rate dropped as low as 0.0132 percent, the lowest level since reaching 0.0051 percent on Feb. 1. The rate on the 3-month bill touched 0.0487 percent, the lowest level since Jan. 26, while the rate on the 12-month Treasury bill reached 0.2804 percent, the lowest level since Feb. 9.
There’s “heightened demand” for a place to park cash as the quarter ends, New York-based strategists Alex Roever and Teresa Ho at JPMorgan Chase & Co., wrote in a June 11 research note to clients.
‘Extra Liquidity’
Many money funds are preparing for shareholder redemptions near the end of the quarter and are “building in extra liquidity” through short-dated bill positions, they wrote. In addition, there’s record cash on corporate balance sheets favoring Treasuries and an elevated amount of cash among the assets of institutional investors, according to the analysts.
The Fed will probably take “significant” time to shift toward tighter monetary policy, as long as the economy takes years to reach full employment and inflation is low, said the Fed’s regional bank in San Francisco.
Taking into account a simple rule of thumb for monetary policy, as well as the effects of the Fed’s asset purchases, “the recommended period of a near-zero funds rate would end at the beginning of 2012,” Glenn Rudebusch, the bank’s associate director of research, wrote in a paper released today.
Output for the euro region’s economy rose 0.8 percent in April, the European Union’s statistics office in Luxembourg said today. The median forecast of 33 economists was for a 0.5 percent gain.
Greece’s Rating Cut
Greece’s credit rating was cut four steps to non-investment grade, or junk, by Moody’s Investors Service, which cited the country’s economic “risks.”
The rating was lowered to Ba1 from A3, Moody’s said in a statement today from London. The outlook is stable, it said. Greece is already rated junk by Standard & Poor’s.
The European Union announced last month a rescue package of almost $1 trillion, with support from the International Monetary Fund, to shore up the finances of the region’s weakest economies amid concern that governments will struggle to narrow their budget deficits.
Europe’s sovereign-debt crisis shouldn’t postpone an increase in the Federal Reserve’s target lending rate, St. Louis Fed President James Bullard said at a press briefing in Tokyo. Bullard’s comments contrast with Chicago Fed President Charles Evans and Atlanta Fed President Dennis Lockhart, who have in recent weeks said European turmoil may slow any U.S. boost in borrowing costs.
UBS’s Outlook
UBS AG revised its forecast for the Fed to begin increasing interest rates in January rather than September because of the European debt crisis. The fed funds target will be at 1.50 percent by the end of 2011, or 50 basis points lower than its previous forecast, UBS said in a research note today.
Futures contracts on the CME Group Inc. exchange show a 29 percent chance U.S. policy makers will raise the target rate for overnight lending by at least a quarter-percentage point by the December meeting, compared with 28 percent odds late last week. The U.S. central bank has kept the target in a range of zero to 0.25 percent since December 2008.
The Fed held the first of its tests of the term deposit facility, a tool that may be used eventually to tighten credit by draining cash from the banking system.
The central bank offered $1 billion of 14-day term deposits through an auction. The maximum interest rate for the deposits will be the primary credit rate, or discount rate, currently 0.75 percent. The results of the auction will be announced tomorrow at about noon.
–With assistance from Keith Campbell in London and Yasuhiko Seki in Tokyo. Editors: Dennis Fitzgerald

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