–Adds Detail To Version Transmitted At 0830 GMT
–UK BBA: Jun sa mortgage approvals 26,269 vs 29,567 May
–UK BBA: Jun sa remortgage approvals 14,001 vs 17,584 May

LONDON (MNI) – Mortgage approvals slumped in June, suggesting
housing market activity will be weak through the summer, British
Bankers’ Association data show.

The seasonally adjusted number of mortgage approvals plunged to
26,269 in June from 29,567 in May, the lowest outturn since the 26,067
recorded back in January 2009. With the distortions caused by the expiry
of the stamp duty holiday in March having faded from picture, these data
point to underlying weakness in the housing market.

The net change in amounts of mortgage lending outstanding was
Stg342 million on the month in June. Gross mortgage loans totalled
Stg7.193 billion in June, down from Stg7.687 billion in May.

“Public holidays and wet weather put a damper on mortgage approvals
in June and demand for unsecured household borrowing was also low.
Paying off loans or overdrafts and building up deposits is the current
consumer ambition,” BBA statistics director, David Dooks said.

Mortgage approvals picked up at the start of 2012, with the end
March expiry of the stamp duty holiday looming. They stood at 37,645 in
January before fading to 31,581 in April, in the wake of the stamp
duty expiry. June mortgage approvals were 20.5% down on a year ago.

The unsecured June borrowing figures showed a small rise in net
credit card credit, which was up Stg255 million on the month. The amount
of overdraft lending outstanding fell to Stg8.45 billion from Stg8.661
billion in May.

The amount of structured personal loans outstanding fell to
Stg36.582 billion from May’s Stg37.16 billion.

–London newsroom: 00 44 207 862 7491; drobinson@marketnews.com
[TOPICS: M$B$$$,MABDS$,M$B$$$]

If my maths is correct, that’s just over the 3 bln target.

3-month average yield 2.434% from previous 2.362%.   Bid to cover ratio 2.9, up from previous 2.6

6-month average yield 3.691% from previous 3.237%     Bid to cover ratio 3.0, up from previous 2.8

–UK BBA: Jun sa mortgage approvals 26,269 vs 29,567 May
–UK BBA: Jun sa remortgage approvals 14,001 vs 17,584 May

LONDON (MNI) – Mortgage approvals slumped in June, suggesting
housing market activity will be weak through the summer, British
Bankers’ Association data shows.

The seasonally adjusted number of mortgage approvals plunged to
26,269 in June from 29,567 in May, the lowest outturn since the 26,067
recorded back in January 2009. With the distortions caused by the expiry
of the stamp duty holiday in March having faded from picture, these data
point to underlying weakness in the housing market.

The net change in amounts of mortgage lending outstanding was
Stg342 million on the month in June. Gross mortgage loans totalled
Stg7.193 billion in June, down from Stg7.687 billion in May.

–London newsroom: 00 44 207 862 7491; drobinson@marketnews.com
[TOPICS: M$B$$$,MABDS$,M$B$$$]

–Adds Comments From CDU/CSU Parl Leader To Story Sent 07:51 GMT

BERLIN (MNI) – A senior member of German Chancellor Angela Merkel’s
center-right CDU/CSU-FDP government coalition argued for an exit of
Greece from the Eurozone in a newspaper interview published Tuesday.

“It could help to create confidence in markets if Greece were no
longer part of the Eurozone,” FDP secretary general Patrick Doering told
the daily Passauer Neue Presse. “Greece can become more competitive and
recover faster outside of the Eurozone,” he argued.

On Sunday, Economics Minister Philipp Roesler predicted that Greece
would most likely be unable to meet the goals agreed with its
international lenders. “I want to say this here very clearly: if Greece
does not meet its obligations, there can be no further payments to
Greece,” he stressed.

In that case, Greece might come to the conclusion that it would be
better to leave the Eurozone, said Roesler, who is also vice chancellor
and head of the FDP. “I think that for many experts, for the FDP, and
for me, a Greek exit from the Eurozone has long since lost its horror,”
he added.

Horst Seehofer, the head of the CSU and Bavarian prime minister,
told the daily Bild in an interview published Tuesday that “we should
not talk at all about a new aid package, and money from the agreed aid
package must only flow if Greece fully meets its obligations.”

CDU/CSU parliamentary leader Volker Kauder said in a separate
interview with Bild to be published tomorrow that “there cannot be any
further concessions [for Greece] neither on timing nor content.”

It is already clear that Greece won’t be able to cut its debt to
120% of GDP by 2020, the weekly Der Spiegel reported Sunday. Granting
Greece more time to meet its budget consolidation goals would require
E10-50 billion in additional aid, according to estimates by the troika –
the EU Commission, the ECB and the IMF, the magazine said.

Doering said he did not see a majority in parliament for further
aid to Greece. Michael Meister, the deputy leader of the CDU/CSU
parliamentary group, echoed the comment in an interview with the daily
Rheinische Post: “If more time [for Greece] means more money, I think
this won’t come about.”

Government spokesman Georg Streiter on Monday refused to comment on
how Merkel would position herself if further aid for Greece were to
become necessary.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

[TOPICS: M$X$$$,MGX$$$,M$$CR$,M$G$$$,M$Y$$$,MFX$$$,MT$$$$]

• Waiting for Troika report on Greece in September
• Until Troika report, have to assume Greece will stand on own feet by 2020
• Greece must fulfil program conditions for more aid

A new euro-era record!!

FRANKFURT (MNI) – The German government confirmed that it will sell
E1.0 billion in a top up of its 2023, 0.1% inflation-linked bond on
Wednesday, July 25, the Bundesbank announced on Tuesday.

Bids are to be submitted by 10:00 GMT on Wednesday, with results of
the allocation to be announced shortly thereafter.

The linkers will settle on Friday, July 27 and mature on April 15,
2023.

– Frankfurt bureau: +49 69-720-142; email: frankfurt@marketnews.com –

[TOPICS: M$G$$$,M$$FI$,MGX$$$]

BERLIN (MNI) – A senior member of German Chancellor Angela Merkel’s
center-right CDU/CSU-FDP government coalition argued for an exit of
Greece from the Eurozone in a newspaper interview published Tuesday.

“It could help to create confidence in markets if Greece were no
longer part of the Eurozone,” FDP secretary general Patrick Doering told
the daily Passauer Neue Presse. “Greece can become more competitive and
recover faster outside of the Eurozone,” he argued.

On Sunday, Economics Minister Philipp Roesler predicted that Greece
would most likely be unable to meet the goals agreed with its
international lenders. “I want to say this here very clearly: if Greece
does not meet its obligations, there can be no further payments to
Greece,” he stressed.

In that case, Greece might come to the conclusion that it would be
better to leave the Eurozone, said Roesler, who is also vice chancellor
and head of the FDP. “I think that for many experts, for the FDP, and
for me, a Greek exit from the Eurozone has long since lost its horror,”
he added.

Horst Seehofer, the head of the CSU and Bavarian prime minister,
told the daily Bild in an interview published Tuesday that “we should
not talk at all about a new aid package, and money from the agreed aid
package must only flow if Greece fully meets its obligations.”

It is already clear that Greece won’t be able to cut its debt to
120% of GDP by 2020, the weekly Der Spiegel reported Sunday. Granting
Greece more time to meet its budget consolidation goals would require
E10-50 billion in additional aid, according to estimates by the troika –
the EU Commission, the ECB and the IMF, the magazine said.

Doering said he did not see a majority in parliament for further
aid to Greece. Michael Meister, the deputy leader of the CDU/CSU
parliamentary group, echoed the comment in an interview with the daily
Rheinische Post: “If more time [for Greece] means more money, I think
this won’t come about.”

Government spokesman Georg Streiter on Monday refused to comment on
how Merkel would position herself if further aid for Greece were to
become necessary.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

[TOPICS: M$X$$$,MGX$$$,M$$CR$,M$G$$$,M$Y$$$,MFX$$$,MT$$$$]

Unchanged from June and pretty much in line with Reuter’s median forecast of 46.5.

Markit says euro zone PMIs consistent with quarterly GDP contraction of 0.6%.

Spanish 10 year govt bond yield up marginally, by 2 bps at 7.50%

European stocks have slipped into negative territory, euro stoxx down presently around 0.25%.

EUR/USD has slipped under 1.2100 in the wake of the worse than expected German PMI data. But it has to be said, things are looking pretty sluggish once again in the forex markets.

Speaking on BBC radio Mr O’Neill said

“The thing one would hope for is that the scale of the rise in bond yields would prompt fresh action from the monetary authorities, particularly the ECB” adding “to really solve this without costing each individual state a lot more, the ECB has to somehow do something more dramatic and radical”

Yep.

Down from 48.1 in June.

Manufacturing PMI did the damage,  down at 43.3 from 45.0 in June,  worse than median forecast of 45.3.

Services PMI 49.7, down fractionally from 49.9 in June and very slightly worse than median forecast of 50.0.

EUR/USD has slipped back to 1.2105 at writing.

Up from final 47.3 in June and 4 month high.

Manufacturing PMI down at 43.6 from 45.2 in June (lowest since May 2009), but services PMI up at 50.2 from 47.9 in June (six month high)

FRANCE DATA: July mfg sentiment 90 vs June 91 (92)
– Below expected; MNI analysts survey median forecast 91
– Execs’ own-company outlook -8 vs June -5 (-4)
– Sector production outlook -45 vs June -35 (-30)
– See MNI MainWire for details

From downwardly revised 91 in June.

Aforementioned buy orders at 1.2100/10 holding downside for now. From session low 1.2104 we’re back at 1.2115.

Being told light sell stops just below 1.2100.

FRANKFURT (MNI) – The Eurogroup reiterated on Tuesday its “strong
commitment” to ensuring the stability of the Eurozone, President
Jean-Claude Juncker said following Moody’s decision to revise the
outlook on the AAA sovereign ratings of three Eurozone states to
negative.

“We take note of the rating decision of Moody’s, which confirms the
very strong rating enjoyed by a number of euro area member states, as
supported by the sound fundamentals which these and other euro area
countries continue to enjoy,” Juncker said in a press release. “Against
this background, we reiterate our strong commitment to ensure the
stability of the euro area as a whole.”

Moody’s said late Monday it had lowered the outlook for Germany,
Netherlands and Luxembourg to negative from stable, citing “the rising
uncertainty regarding the outcome of the euro area debt crisis.” It
affirmed Finland’s Aaa stable rating.

– Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com –

[TOPICS: M$X$$$,M$$CR$,MGX$$$]

Secretary general of the FDP, the junior partner in Merkel’s center-right coalition, says Greece is expected to “clearly miss” the targets outlined in the memorandum of understanding for its latest bailout and that there would be no majority in the Bundestag for additional aid for Greece.

5 year notes up 11 bps at 7.53%

2 year notes up 3 bps at 6.56%

UPDATE:  10 year now 7.48%

Selling 3 and 6 month bills today.

Target amount 3 billion euros.

Results expected around 08:40 GMT.

DAX futures up +0.1%, CAC 40 futures up  +0.4%.