- Following on yesterday's post about PIGS spreads widening, have sold EUR/USD @ 1.2284.
- Ability to rally the past few days in the face of bad news is slightly worrying. Perhaps market is just suffering from EU news fatigue. We'll see.
- Its nice to be back with the trend again.
- Check out Spain 10YY. Now at 4.88%, above last month's blow-out high of 4.79%. FX markets cannot ignore such developments forever.
3 comments:
From FT Alphaville :=
Spain sold €3bn of 10-year bonds at a yield of 4.864 per cent on Thursday. According to FT Alphaville, that was a jump from the 4.045 per cent paid at its last 10-year auction, on May 20. Quite a jump. To put that first figure into some context, 4.86 is above the benchmark bond’s long-term average, but still 100 basis points below the 5.8 per cent yield Spain was paying back in 2000 — though European Central Bank repo rates and 10-year bund yields were a lot higher then too.
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