Week ahead: Central bank intervention looming?

All eyes remain on anecdotal news on how depositors in Greece and outside the country are reacting to the recent events. More worrying news could add the pressure for Euro-zone officials to do something quickly to keep the situation under control, but as the ECB really remains the only actor with the capability of acting fast, the next intervention is likely to come from the central bank. Also the Spanish situation is quickly heating up.

In terms of economic data releases, the main focus will be on flash PMIs for May. We expect the Euro-zone PMIs to continue to fall, not exactly helping the current gloomy mood. Also the Chinese HSBC PMI will gather interest, while US economic data calendar is rather light.

On the issuance front, Belgium will sell bonds on Monday, the Netherlands on Tuesday and Germany on Wednesday, while the US will sell 2-year, 5-year and 7-year notes from Tuesday to Thursday. Of the issuers most closely followed at the moment – Spain and Italy – Spain will offer T-bills on Tuesday.

Read more in our International Week Ahead below.

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