Bonds: Spanish yield falls below 7pc

Date: Wednesday 20 Jun 2012

These were the yields and movements on some of the most watched 10 year bonds by the close in Europe:

Spain: 6.74% (-30bp)
Italy: 5.77% (-15bp)
France: 2.68% (+3bp)
Germany: 1.61% (+8bp)
UK: 1.77% (+5bp)
US: 1.66% (+4bp)

What’s that you say? Spanish bonds rose?

In a dramatic movement on Wednesday Spanish 10 year debt surged, knocking 30 basis points off the yield.

The adjustment came after France’s new President, Francois Hollande, suggested the Eurozone bailout fund, known as the European Stability Mechanism could be used to buy the debt of countries which can show they have reformed their budgets.

We’re yet to hear what the ultra conservative Germans think of the idea but right now, the optimists will take what they can get.

BS

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