China’s factory activity shrank for the first time in seven months in May as new orders fell, a preliminary survey of purchasing managers showed, adding to concerns that a recovery in the world’s second-largest economy is sputtering.

The flash HSBC Purchasing Managers’ Index for May fell to 49.6, slipping under the 50-point level demarcating expansion from contraction for the first time since October. The final HSBC PMI stood at 50.4 in April.

A sub-index measuring overall new orders dropped to 49.5, the lowest reading since September, suggesting China’s domestic economy is not strong enough to offset soft external demand. >> Read More

The Eurozone debt crisis that has unsettled investors over the last two years is “largely over”, said economist and former Italian Prime Minister Mario Monti on Tuesday morning.

He said that domestic policy measures and European Central Bank policies in the second half of last year had succeeded in bringing sovereign borrowing costs back down.

Although he is confident that the fiscal and banking crisis in the Eurozone is over, “what is not over is the economic crisis and social aspects of that crisis”.

Dr Monti was part of a technocratic government that took over the running of Italy in the midst of the Eurozone debt crisis in 2011.

Above is Monthly Chart of  : Government Bond 10 Year

Just Click to Enlarge the CHART 

On Friday it closed at 7.41 level 

Below 7.85 level ,We See India Bond Yield to tumble upto 7.096 ,6.843 level very soon !!

If this is the Indication then it means will see More Firework in Bank Stocks ,Bank Nifty in coming Weeks and if Bond Yield to tumble then it means some unexpected move from RBI on card in next month Meeting ??

Government Bond 10Y | Notes

A government bond is a security issued by a national government denominated in the country’s own currency. The most common process of issuing bonds is through underwriting. In underwriting, one or more securities firms or banks, forming a syndicate, buy an entire issue of bonds from an issuer and re-sell them to investors. The security firm takes the risk of being unable to sell on the issue to end investors. However government bonds are instead typically auctioned. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds. The first ever government bond was issued by the English government in 1693 to raise money to fund a war against France. In the past, Government bonds were usually referred to as risk-free bonds, because governments could easily devaluate their currencies or raise taxes to redeem the bond at maturity. However, the recent downgrade of the United States debt rating and the on-going sovereign debt crisis in the European Union has cast serious doubts into those risk-free assumptions. Moreover, unless governments issue inflation-indexed bonds, there is inflation risk, in that the principal repaid at maturity will have less purchasing power than anticipated if the inflation outturn is higher than expected. 

Technically Yours/ASR TEAM/BARODA/INDIA

Submitted by Michael Snyder of The Economic Collapse blog,

When is the economic collapse going to happen?  Just open up your eyes and take a look around the globe.  The next wave of the economic collapse may not have reached Wall Street yet, but it is already deeply affecting billions of lives all over the planet.  Much of Europe has already descended into a deep economic depression, very disturbing economic data is coming out of the second and third largest economies on the globe (China and Japan), and in most of the world economic inequality is growing even though 80 percent of the global population already lives on less than $10 a day.  Just because the Dow has been setting brand new all-time records lately does not mean that everything is okay.  Remember, a bubble is always the biggest right before it bursts.  The next major wave of the economic collapse is already sweeping across Europe and Asia and it is going to devastate the United States as well.  I hope that you are ready.

The following are 10 scenes from the economic collapse that is sweeping across the planet…

#1 27 Percent Unemployment/60 Percent Youth Unemployment In Greece

The economic depression in Europe just continues to get worse with each passing month.  According to the Daily Mail, the unemployment rate in Greece has nearly tripled since 2009… >> Read More

The eurozone debt crisis and its economic fallout have sharply reduced French support for the EU, with 77 per cent believing European economic integration has been bad for France’s economy, according to a survey.

The study by the Pew Research Centre found that only 41 per cent of French respondents had a favourable opinion of the EU, down from 60 per cent in 2012. Even in eurosceptic Britain, more people (43 per cent) have a favourable view.

 “No European country is becoming more dispirited and disillusioned faster than France,” concludes the Pew study, which polled some 8,000 respondent in eight EU countries.

The poll also captured the widening chasm between Germany and France in terms of support for greater integration. >> Read More

As G-7 leaders gather in London this weekend, investors will be looking for clues on how the world community plans to address the on-going sovereign debt crisis, sluggish economic growth, and exchange rates—the usual issues that have topped the agenda of G-7 and G-20 meetings in the last two years.

Two policies are on the table.

The first policy, supported by Germany and France, is to stick with austerity, which imposes fiscal discipline on heavily indebted countries—deflating the asset bubbles that preceded the financial crisis.

The problem with this policy is that it is depressing economic growth, and requires a great deal of financing from the IMF. >> Read More

Japan will be consumed by a debt crisis surpassing the US subprime crash, a leading US-based hedge fund manager has warned, telling investors that “the beginning of the end has begun” for Japan’s finances.

Over-indebted governments, and especially the precarious state of Japan’s finances, set the tone for the high-profile Ira Sohn investment conference in New York on Wednesday.

 Kyle Bass of Hayman Capital, a $1.8bn Texas-based hedge fund and a noted Japan bear, said signs of the crisis had started to emerge, as banks and dealers become less willing to take the other side of negative bets from funds such as his.

Mr Bass said that the Japanese government was “insolvent” and described recent accounting moves that included issuing a new form of debt called Japanese compensation bonds as “adding a Ponzi scheme to a Ponzi scheme”. >> Read More

German Chancellor Angela Merkel is not to blame for the austerity policies being imposed elsewhere, the head of the European Commission was quoted on Sunday as saying, in an apparent attempt to mend fences with Berlin.

European Commission President Jose Manuel Barroso drew fire from Germany last month for saying that austerity had “reached its limits,” in a public challenge to Europe’s biggest economy, which has long championed fiscal restraint.

With Greece mired in recession, unemployment in some countries running at more than 25 percent, and France being given more time to cut its budget deficit, there is growing pressure on Merkel and other hardliners to focus on growth and job creation, not on austerity. >> Read More

Greece’s securities regulator has extended a short-selling ban on bank shares to the end of July to protect investors while the recapitalisation of the country’s cash-strapped lenders is completed.

Short-selling involves investors borrowing shares to sell on the market and later buying them back at a lower price to make a profit. Greek banking stocks have been heavily shorted as investors bet that stock prices would fall further during the country’s sovereign debt crisis.

“The board took into consideration the ongoing bank recapitalisation process,» the Capital Markets Commission said in a statement, confirming an earlier Reuters story.

A short-selling ban on all stocks was introduced in August 2011 to protect investors from the fallout of the country’s debt crisis. Greece scrapped the ban on short selling non-banking stocks in January as market confidence grew after the country averted bankruptcy last year.

The regulator said that the three-month extension has been approved by the European Securities and Markets Association (ESMA).

One of Germany‘s most influential political thinkers has delivered a stark warning that its post-second world war liberal democracy cannot be taken for granted and its dominant role in managing Europe‘s debt crisis could lead to disaster.

Jürgen Habermas, the Frankfurt professor whose political thinking has helped shape Germany over the past 50 years, called for the EU to be turned into a supranational democracy and the eurozone to become a fully fledged political union, while lambasting the “technocratic” handling of the crisis by Brussels and European leaders.

In his first big speech on the euro crisis, delivered at Leuven University, east of Brussels, Habermas called for a revival of Europe’s doomed constitutional ambitions, arguing that the disconnect between what needed to be done in economic policy and what was deemed to be politically feasible for voters was one of the biggest perils facing the continent. “Postponing democracy is rather a dangerous move,” he said. >> Read More