Spain managed to attract €4.6bn during the recent bond auction. It sold 12-month and 18-month bonds. Spanish bonds were in demand. Therefore, the trading volume exceeded analysts’ expectations.
The Spanish authorities had planned to attract €3,5bn to €4,5bn. The 12-month bond yield declined from 3,07% down to 2,84% while the 18-month yield dropped from 3,33% down to 3,07%. The demand was nearly 4 times as high as the supply.
Meanwhile, investors are worried that the Spanish government still hasn’t asked the EU for financial support. This may eventually lead to a default.
Forex.
According to , the Euro is flattish against the US Dollar. EURUSD is trading within the 1,2856-1,3171 price range.
The rally will resume on breaking and consolidating above 1,3171. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1,2870 (as shown below).
