Date: Thursday 03 May 2012
These were the yields and movements on some of the most watched 10 year bonds just before the close in Europe:
Spain: 5.79% (-7bp)
Italy: 5.50% (-5bp)
France: 2.91% (-6bp)
Germany: 1.61% (flat)
UK: 2.04% (-1bp)
US: 1.92% (-1bp)
Note: bp= basis point or 0.01 percentage points.
Both France and Spain managed successful debt auctions while the ECB maintained its main interest rate at 1% on Thursday.
The Spanish government managed to sell €2.52bn in bonds of three and near-five year maturities. The initial target had been €2.5bn and demand was strong (3.69 bid to cover ratio for the longest maturity bonds). This was a reasonable effort by Spain in the current climate.
France sold €7.43bn in bonds maturing in 5, 9, 10 and 13 years. The 10 year bonds went at an average yield of 2.96%, slightly better than at a similar auction at the beginning of April.
The ECB, as expected, kept its main refinancing interest rate at 1%, with the bank’s president, Mario Draghi, saying a reduction in the rate hadn’t been considered.
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