Date: Thursday 28 Jun 2012
These were the yields and basis point movements of some of the most watched 10-year bonds by the close in Europe:
Spain: 6.94% (+2bp)
Italy: 6.21% (flat)
France: 2.68% (+2bp)
Germany: 1.51% (-5bp)
UK: 1.63% (-bbp)
USA: 1.58% (-4bp)
Italy managed to sell benchmark 10-year debt on Thursday but investors remain worried by developments within the Eurozone.
The Italian sale saw €5.42bn of five- and ten-year bonds sold, with the 10-year maturities being priced at 6.19%, compared to 6.03% at a similar auction in May.
The auction itself was not a bad effort, but the market doesn’t think Italy can continue to pay an interest rate of over 6% for long.
How to reduce both Italian and Spanish borrowing is top of the agenda at a summit of European politicians in Brussels today and Friday.
France is trying persuade Germany to allow so called eurobonds, common euro area debt instruments, but the German Chancellor, Angela Merkel, appears unwilling to give the policy her backing.
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