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The first Spanish 10 year bond auction after the June 28-29 EU Summit resulted in a maximum yield of 6.505%. The average yield was 6.43%. 10 year bonds are the benchmark for the whole market and the state of the sovereign. Spain raised a total of 3 billion euros.

The previous 10 year bond auction resulted in a yield of 6.04%. In the secondary markets, Spanish yields peaked at 7.28% before calming down.

EUR/USD was hanging above the 1.2520 line towards the release of the results. The pair fell from higher ground yesterday on difficulties in implementing the summit results.

After an initial hesitation, EUR/USD is now sliding below yesterday’s lows, towards 1.25.

More results:  2016 max yield 5.621% v 5.443% btc 2.56 v 2.56. The average yield for shorter term bonds for 2015 actually fell from 5.457% to 5.536%.

The EU Summit results, which were better than expected, pushed yields down, despite the doubts, which were in abundance.

Towards the highly anticipated auction today, 10 year bond yields were on the rise once again, topping 6.50%. It remains at 6.53% following the auction,  rise of 1.93% for the day.

The bigger event of the day is the rate decision: the ECB is expected to lower the rates by 0.25%.

Further reading: Italian bailout in July?