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Spain Capitalizes on Hope – Enjoys Successful Auction

The Kingdom of Spain exceeded its auction targets and paid a lower yield than last time. Spain is enjoying the non-downgrade from Moody’s and hope for lightweight funding solution.

The government raised 4.614 billion euros, above the expected 4.5 billion.

EUR/USD is struggling around the 1.31 line, still waiting for significant results from the EU Summit that commences today.

Yields for the benchmark 10 year bond hit 5.458, lower than 5.666% seen in the previous auction, and far better than yields of around 6.5% seen in the stormy days.

Spain also enjoyed lower yields on 3 year bonds: 3.227 instead of 3.676%, and on 4 year bonds: 3.977% instead of 4.603. The euro-zone’s fourth largest country is close to meeting all its annual bond auctions.

It’s important to remember that it enjoyed a good period also early in the year (thanks to the LTRO), and managed to cash in at that point as well.

With improved yields, Spain has less motivation to ask for aid.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.