Alex Bobrov
On Thursday, Spain placed 2-, 4- and 10-year bonds to the amount of €2.0 bn. The French bond auction was more successful: the yield declined.
The yield of the Spanish bonds expiring in 2014 reached 4.345, which was a 0.87% increase as opposed to the previous bond. The 10-year bond yield increased from 5.74% up to 6.04%.
The yield growth suggests that investors are concerned about the necessity of recapitalizing Spain ’s banking system, which will require dozens of billions euro.
it is necessary to mention George Soros’s opinion published on Project Syndicate’s website. According to him, the real eurozone economy is shrinking. Only Germany keeps showing relatively stable growth. These processes lead to disintegration. So, the European authorities have several months to correct their mistakes.
Forex.
According to , EURUSD is rallying in the form of wave «а(С)/С» of H3 started from 1,2409. The closest major levels of resistance are 1,2639 and 1,2700. In order to reverse the mid-term bullish trend, the price will have to break and consolidate below the bottom of the MF sloping channel and pivot 1,2443.
Alex Bobrov
